eBay 2006 Annual Report Download - page 107

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Restricted Stock Units Activity
A summary of the status of and changes in restricted stock units granted under our equity incentive plans as of
December 31, 2006 and changes during the year ended December 31, 2006 is presented below (in thousands, except
per share amounts):
Shares
Weighted Average
Grant-Date Fair
Value (per share)
Outstanding at January 1, 2006 ................................ — $ —
Awarded ................................................. 526 28.13
Vested................................................... — —
Forfeited ................................................. (18) 28.15
Outstanding at December 31, 2006 ............................. 508 28.13
Vested and expected to vest at December 31, 2006 .................. 388
As of December 31, 2006, there was approximately $10.5 million of unrecognized compensation cost related
to restricted stock units granted under our equity incentive plans. That cost is expected to be recognized over a
weighted-average period of two years.
Nonvested Shares Activity
A summary of the status of and changes in nonvested shares granted under our equity incentive plans and
assumed in acquisitions as of December 31, 2006 and changes during the year ended December 31, 2006 is
presented below (in thousands, except per share amounts):
Shares
Weighted Average
Grant-Date Fair
Value (per share)
Nonvested at January 1, 2006 ................................. 40 $43.82
Granted.................................................. 721 33.12
Vested................................................... (90) 38.09
Forfeited ................................................. (105) 39.15
Nonvested at December 31, 2006 ............................... 566 39.72
During the year ended December 31, 2006, the fair value of awards vested under our stock plans was
$2.5 million, determined as of the date of vesting. There were no awards vesting in 2005 and 2004. As of
December 31, 2006, there was approximately $12.8 million of unrecognized compensation cost related to
nonvested shares granted under our equity incentive plans. That cost is expected to be recognized over a
weighted-average period of three years.
Non-stockholder approved stock option grants
Prior to our initial public offering in 1998, our Board of Directors approved three stock option grants outside of
formally approved stockholder plans to two independent directors upon their joining our Board of Directors and to
an executive officer upon his hiring. All of such option grants vested over 25% one year from the date of grant, with
the remainder vesting at a rate of 2.08% per month thereafter and expire 10 years from the date of grant. The options
granted to the independent directors were immediately exercisable, subject to repurchase rights held by us, which
lapse over the vesting period. The terms and conditions of such grants are otherwise identical to nonqualified option
grants made under the stock option plan in effect at that time. At the time of such grants, members of our Board of
Directors (and their affiliates) beneficially owned in excess of 90% of our then outstanding voting interests. We have
103
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)