Circuit City 2009 Annual Report Download - page 55

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Table of Contents
The aggregate intrinsic value in the tables above represents the total pretax intrinsic value (the difference between the closing stock price on
the last day of trading in 2009 and the exercise price) that would have been received by the option holders had all options been exercised on
December 31, 2009. This value will change based on the fair market value of the Company’s common stock.
The following table reflects the activity for all unvested stock options during 2009:
At December 31, 2009, there was approximately $2.6 million of unrecognized compensation costs related to unvested stock options, which
is expected to be recognized over a weighted average period of 1.19 years. The total fair value of stock options vested during 2009, 2008
and 2007 was $2.5 million, $3.0 million and $0.7 million, respectively.
Restricted Stock and Restricted Stock Units
In October 2004, the Company granted 1,000,000 restricted stock units under the 1999 Plan to a key employee who is also a Company
director. A restricted stock unit represents the right to receive a share of the Company’s common stock. The restricted stock units have none
of the rights as other shares of common stock until common stock is distributed, other than rights to cash dividends. The restricted stock unit
award was a non-performance award which vests at the rate of 20% on May 31, 2005 and 10% per year on April 1, 2006 and each year
thereafter. The share-based expense for restricted stock awards was determined based on the market price of the Company’
s stock at the date
of the award. Compensation expense related to the restricted stock award was approximately $0.6 million in each of 2009, 2008 and 2007.
Share-based compensation expense for restricted stock issued to Directors was $0.1 million in each of 2009, 2008 and 2007.
Share repurchase plan
In May 2008, the Company’s Board of Directors authorized the repurchase of up to 2,000,000 shares of the Company’s common stock.
During 2009 the Company repurchased 98,934 common shares at a cost of approximately $1.2 million, an average of $11.87 per share.
During 2008 the Company repurchased 475,301 common shares at a cost of approximately $5.8 million, an average of $12.25 per share.
Theses shares are included in common stock in treasury at cost in the Company’s consolidated balance sheet.
9.
INCOME TAXES
The components of income before income taxes are as follows (in thousands):
52
Shares
Weighted
Average Grant-
Date Fair Value
Unvested at January 1, 2009
641,780
$
11.18
Granted
164,000
$
9.53
Vested
(241,363
)
$
10.39
Forfeited
(20,187
)
$
12.80
Unvested at December 31, 2009
544,230
$
10.98
Year Ended December 31,
2009
2008
2007
United States
$
54,468
$
61,220
$
81,832
Foreign
18,617
22,523
18,191
Total
$
73,085
$
83,743
$
100,023