8x8 2014 Annual Report Download - page 78

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The estimated fair value of stock purchase rights granted under the Equity Compensation Plans were estimated using the Black-Scholes pricing
model with the following weighted-average assumptions:
STOCK REPURCHASES
On October 19, 2010, the Company's board of directors authorized the Company to create a new stock repurchase plan to purchase an additional
$10.0 million of its common stock from time to time until October 19, 2011. The stock repurchase plan expired on October 19, 2011. The stock
repurchase activity since March 31, 2011 is summarized as follows:
The total purchase prices of the common stock repurchased and retired were reflected as a reduction to consolidated stockholders' equity during
the period of repurchase.
In fiscal 2012, the Company also repurchased in two transactions at current market prices 352,030 shares with a total repurchase price of $1.5
million from former and current members of the board of directors outside of the stock repurchase plan.
In fiscal 2013, the Company also withheld 73,751 shares related to tax withholdings on restricted stock awards with a total price of $0.4 million.
In fiscal 2014, the Company also withheld 50,400 shares related to tax withholdings on restricted stock awards with a total price of $0.5 million.
6. EMPLOYEE BENEFIT PLAN
401(k) Savings Plan
In April 1991, the Company adopted a 401(k) savings plan (the "Savings Plan") covering substantially all of its U.S. employees. Eligible
employees may contribute to the Savings Plan from their compensation up to the maximum allowed by the Internal Revenue Service. In January
2007, the Company reactivated the employer matching contribution. The matching contribution is 100% of each employee's contributions in
each year, not to exceed $1,500 per annum. The matching expense in 2014, 2013 and 2012 was $0.4 million, $0.3 million and $0.3 million,
respectively. The Savings Plan does not allow employee contributions to be invested in the Company's common stock.
73
Years Ended March 31,
2014
2013
2012
Expected volatility
40%
40%
73%
Expected dividend yield
-
-
-
Risk
-
free interest rate
0.09%
0.14%
0.10%
Weighted average expected rights term
0.75 years
0.75 years
0.75 years
Weighted average fair value of rights granted
$
2.83
$
1.78
$
1.67
Weighted
Average
Shares
Price
Amount
Repurchased
Per Share
Repurchased
Balance at March 31, 2011
3,870,985
$
2.26
$
8,022,690
Repurchase of common stock
301,800
2.95
888,964
Balance at March 31, 2012
4,172,785
2.23
8,911,654
Repurchase of common stock
-
-
-
Balance at March 31, 2013
4,172,785
2.23
8,911,654
Repurchase of common stock
-
-
-
Balance at March 31, 2014
4,172,785
$
2.23
$
8,911,654