eTrade 2009 Annual Report Download - page 159

As of December 31, 2009, there was $11.4 million of total unrecognized compensation cost related to
non-vested stock options. This cost is expected to be recognized over a weighted-average period of 1.0 year.
Restricted Stock Awards and Restricted Stock Units
The Company issues restricted stock awards and restricted stock units to its employees. Each restricted
stock unit can be converted into one share of the Company’s common stock upon vesting. These awards are
issued at the fair value on the date of grant and vest ratably over the period, generally six months to four years.
The fair value is calculated as the market price upon issuance.
The Company recorded $26.7 million, $15.5 million and $9.4 million for the years ended December 31,
2009, 2008 and 2007, respectively, in compensation expense from continuing operations related to restricted
stock awards and restricted stock units. The Company recognized a tax benefit of $9.6 million, $3.9 million and
$3.2 million related to restricted stock awards and restricted stock units for the years ended December 31, 2009,
2008 and 2007, respectively.
A summary of non-vested restricted stock award activity is presented below:
Shares
(in thousands)
Weighted-
Average
Grant
Date Fair
Value
Non-vested at December 31, 2008 985 $ 9.27
Issued 2,756 $ 1.46
Released (vested) (1,347) $ 4.90
Canceled/forfeited (15) $24.59
Non-vested at December 31, 2009 2,379 $ 2.54
A summary of non-vested restricted stock unit activity is presented below:
Units
(in thousands)
Weighted-Average
Remaining
Contractual Life
Aggregate
Intrinsic Value
(in thousands)
Outstanding at December 31, 2008 4,995 0.64 $ 5,669
Issued 18,733
Released (4,193)
Canceled/forfeited (817)
Outstanding at December 31, 2009 18,718 0.73 $33,037
Vested and expected to vest at December 31, 2009 17,171 0.70 $30,306
As of December 31, 2009, there was $18.1 million of total unrecognized compensation cost related to
non-vested awards. This cost is expected to be recognized over a weighted-average period of 1.1 years. The total
fair value of restricted shares and restricted stock units vested was $8.1 million, $5.6 million and $11.0 million
for the years ended December 31, 2009, 2008 and 2007, respectively.
Employee Stock Purchase Plan
The shareholders of the Company previously approved the 2002 Employee Stock Purchase Plan (“2002
Purchase Plan”), and reserved 5,000,000 shares of common stock for sale to employees at a price no less than
85% of the lower of the fair value of the common stock at the beginning of the one-year offering period or the
end of each of the six-month purchase periods. Effective August 1, 2005, the Company changed the terms of its
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