Vistaprint 2012 Annual Report Download - page 78

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74
The intrinsic value in the table above represents the total pre-tax amount, net of exercise price, which would
have been received by option holders if all option holders had exercised all options that have an exercise price
lower than the market price on June 30, 2012. The total intrinsic value of options exercised during the fiscal years
ended June 30, 2012, 2011 and 2010 was $1,900, $8,319, and $26,667, respectively.
Restricted share units
The fair value of RSU grants is equal to the fair market value of our ordinary shares on the date of grant
and is recognized as expense on a straight-line basis over the requisite service period, net of estimated forfeitures
based on historical experience. RSUs generally vest quarterly for 3 years for non-employee directors and 25% after
one year and quarterly thereafter for employees. For awards with a performance condition, we recognize
compensation cost on an accelerated basis over the requisite service period when achievement of the performance
condition is deemed probable. During the year ended June 30, 2012, we granted 300,000 RSUs that vest based on
performance criteria established for a period of 13 years with a maximum compensation cost of $11,949 over such
period. The performance criteria for a significant portion of these awards were deemed not probable of
achievement. Future changes in our probability conclusions could result in volatility of our share-based
compensation expense.
A summary of our unvested RSU activity and related information for the fiscal year ended June 30, 2012 is
as follows:
RSUs
Weighted-
Average
Grant Date Fair
Value
Aggregate
Intrinsic
Value
Unvested at the beginning of the period . . . . . . . . . . . . . . . . . . . . . . . 782,184 $ 41.83
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791,585 36.53
Vested and distributed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (394,213) 38.47
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80,166) 37.80
Unvested at the end of the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,099,390 $ 39.52 $ 35,510
The weighted average fair value of RSUs granted during the fiscal years ended June 30, 2012, 2011 and
2010 was $36.53, $41.77, and $51.06, respectively. The total intrinsic value of RSUs vested during the fiscal years
ended June 30, 2012, 2011 and 2010 was $14,047, $19,277, and $19,456, respectively.
Restricted share awards
In conjunction with the December 2011 acquisition of Webs, we granted RSAs to the founding shareholders
of Webs that vest 50% on December 28, 2012 and 50% on December 28, 2013, subject to continued employment
on each vesting date with possible accelerated vesting or forfeiture under certain circumstances. The fair value of
the RSAs of $15,843 was determined based on our share price on the date of acquisition and is being recognized
as share-based compensation expense over the two year vesting period.
A summary of our unvested RSA activity and related information for the fiscal year ended June 30, 2012 is
as follows:
RSAs
Weighted-
Average
Grant Date Fair
Value
Aggregate
Intrinsic
Value
Unvested at the beginning of the period . . . . . . . . . . . . . . . . . . . . . . . —$ —
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506,343 31.29
Vested and distributed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ——
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ——
Unvested at the end of the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506,343 $ 31.29 $ 16,355