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58
The total intrinsic value of options exercised during the years ended December 31, 2008, 2007 and 2006 was $3.4 million,
$14.8 million and $4.5 million, respectively.
The total fair value of options vested during the years ended December 31, 2008, 2007 and 2006 was $13.5 million, $4.6
million and $5.0 million, respectively.
Cash received from options exercised under all share-based payment arrangements for the years ended December 31, 2008,
2007 and 2006 was $1.8 million, $7.7 million and $0.9 million, respectively. The actual tax benefit realized for the tax deductions
from option exercises under the share-based payment arrangements totaled $3.3 million, $3.6 million and $1.5 million, respectively,
for the years ended December 31, 2008, 2007 and 2006.
At December 31, 2008, the exercise prices of options granted under and outside the 2007 Plan and the 1997 Plan ranged from
$0.55 to $34.73, with a weighted-average remaining contractual life of 3.91 years. The following table summarizes information
concerning outstanding and exercisable options as of December 31, 2008:
Options Outstanding Exercisable Options
Range of
Exercise Prices
Number
Outstanding
December 31,
2008
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
Number
Exercisable
December 31,
2008
Weighted
Average
Exercise
Price
$0.55 6,500 2.01 $ 0.55 6,500 $ 0.55
0.94 930,798 2.99 0.94 930,798 0.94
0.99 – 2.07 767,604 2.06 1.59 767,604 1.59
2.56 – 9.55 778,396 4.50 7.80 778,396 7.80
11.43 – 16.90 71,451 6.57 14.26 48,099 14.29
18.77 839,900 6.57 18.77 427,100 18.77
20.27 – 28.50 592,121 8.37 24.65 79,988 25.54
29.67 – 33.51 256,160 8.45 32.81 53,360 32.72
33.54 20,000 8.71 33.54 4,000 33.54
34.73 60,000 4.43 34.73 12,000 34.73
$0.55 – $34.73 4,322,930 4.98 $ 11.73 3,107,845 $ 6.83
At December 31, 2008, there were 5,022,997 additional shares underlying options, shares of restricted stock and other share-
based awards available for grant under the 2007 Plan, and no additional shares available for grant under or outside of the 1997 Plan.
The following table summarizes j2 Global’s nonvested options as of December 31, 2008 and changes during the year ended
December 31, 2008:
Nonvested Options Shares
Weighted
Average
Grant-Date Fair
Value
Nonvested at January 1, 2008 1,555,735 $ 14.56
Granted 344,453 13.89
Vested (570,870) 18.89
Canceled (114,233) 23.60
Nonvested at December 31, 2008 1,215,085 $ 11.09
As of December 31, 2008, there was $24.7 million of total unrecognized compensation expense related to nonvested share-
based compensation awards granted under the 2007 Plan and the 1997 Plan. That expense is expected to be recognized ratably over a
weighted average period of 3.03 years (i.e., the remaining requisite service period).
Fair Value Disclosure
We use the Black-Scholes option pricing model to calculate the fair-value of each option grant. The expected volatility is based
on historical volatility of j2 Global’s common stock. We elected to use the simplified method for estimating the expected term as
allowed by SAB 110 for options granted through December 31, 2008. Under the simplified method, the expected term is equal to the