Zynga 2011 Annual Report Download - page 85

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Table of Contents
In December 2010, we cancelled an aggregate of 4.2 million unvested ZSUs held by certain of our employees in order to maintain
compliance with certain laws. The ZSUs were cancelled with no consideration given. In March 2011, our board of directors approved a grant of
1.1 million ZSUs to the then current employees impacted by this cancellation, all of which vested on the date of our initial public offering. Our
board of directors also approved a grant of 3.1 million ZSUs to these employees that have a 32 month service period condition that is fulfilled
monthly and were also subject to the liquidity condition (initial public offering or change of control) in order to vest. These ZSUs had a grant
date fair value of $6.44 per share. We also paid this group of employees retention cash bonus payments totaling $3.6 million.
2011 Employee Stock Purchase Plan
Our 2011 Employee Stock Purchase Plan (“2011 ESPP”), was approved by our board of directors in September 2011 and by our
stockholders in November 2011. The maximum number of shares of our Class A common stock that may be issued under our 2011 ESPP is
8,500,000 shares.
Our 2011 ESPP permits participants to purchase shares of our Class A common stock through payroll deductions up to 15% of their
earnings. Unless otherwise determined by the administrator, the purchase price of the shares will be 85% of the lower of the fair market value of
our Class A common stock on the first day of an offering or on the date of purchase. The ESPP offers a six month look-
back feature as well as an
automatic reset feature that will roll the funds contributed by plan participants automatically into the next offering period if the price declines.
Participants may end their participation at any time during an offering and will be paid their accrued contributions that have not yet been used to
purchase shares. Participation ends automatically upon termination of employment with us.
As of December 31, 2011, there were no employee contributions made to the 2011 ESPP, and as a result, no stock-based compensation
expense was recognized in 2011.
Common Stock Reserved for Future Issuance
For the period ended shown below, we had reserved shares of common stock for future issuance as follows (in thousands):
Accumulated Other Comprehensive Income
The components of accumulated other comprehensive income, net of taxes, were as follows (in thousands):
81
December 31, 2011
Common stock warrants
695
Stock options outstanding
102,314
ZSUs outstanding
79,818
Stock options and ZSUs reserved for future issuance
5,283
2011 Equity Incentive Plan
42,500
2011 Employee Stock Purchase Plan
8,500
239,110
December 31,
2011
2010
2009
Unrealized gains (losses) on available-for-sale securities
$
(91
)
$
117
$
Foreign currency translation
453
(3
)
18