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Table of Contents
or exchanged by a participant as full or partial payment to the Company of the exercise price under an option and any shares retained or
withheld by the Company in satisfaction of an employee's obligations to pay applicable withholding taxes with respect to any award will
not be available for reissuance, subjected to new awards or otherwise used to increase the share reserve under the 2008 Plan. The cash
proceeds from option exercises will not be used to repurchase shares on the open market for reuse under the 2008 Plan.
The Company's net income (loss) for the years ended December 31, 2010, 2009 and 2008 included $31 million, $23 million and
$34 million, respectively, of stock-based compensation costs. During 2010, stock-based compensation costs consisted of $13 million
related to stock settled awards and $18 million related to cash settled awards. During 2009, stock-based compensation costs consisted of
$20 million related to stock settled awards and $3 million related to cash settled awards. There was no expense related to cash settled
awards in 2008.
Restricted Stock Unit Awards – As of December 31, 2010, the Company has outstanding restricted stock unit awards ("RSUs") with
service conditions, which are classified as equity awards. The grant-date fair value of RSUs is equal to the market price of the underlying
shares of common stock on the date of grant and is expensed on a straight-line basis over the vesting period for the entire award. The
vesting period for RSU awards is three years.
RSU award activity for the years ending December 31, 2010, 2009 and 2008 is as follows (shares in thousands):
Weighted
Number of Average Grant-
Shares Date Fair Value
2005 Equity Incentive Plan
Nonvested balances at December 31, 2007 592 $ 32.91
Granted 535 9.02
Vested and released (390) 29.07
Forfeited (32) 23.15
Nonvested balance at December 31, 2008 705 $ 17.36
Granted — —
Vested and released (323) 22.16
Forfeited (29) 15.76
Nonvested balance at December 31, 2009 353 $ 13.10
Granted — —
Vested and released (212) 18.71
Forfeited (1) 11.37
Nonvested balance at December 31, 2010 140 $ 9.21
2008 Equity Incentive Plan
Nonvested balance at December 31, 2007 — $ —
Granted 19 7.52
Vested and released — —
Forfeited — —
Nonvested balance at December 31, 2008 19 $ 7.52
Granted 280 3.44
Vested and released (189) 2.84
Forfeited — —
Nonvested balance at December 31, 2009 110 $ 5.19
Granted 84 9.14
Vested and released (91) 7.52
Forfeited — —
Nonvested balance at December 31, 2010 103 $ 6.36
As of December 31, 2010, there were $1 million of total unrecognized compensation costs related to RSUs. These costs are expected
to be recognized over a weighted average period of 0.6 years. The total fair value of RSUs vested during 2010, 2009 and 2008 was
$2 million, $2 million and $3 million, respectively.
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