Circuit City 2010 Annual Report Download - page 49

The following table reflects the activity for all unvested stock options during 2010:
At December 31, 2010, there was approximately $1.3 million of unrecognized compensation costs related to unvested stock options,
which is expected to be recognized over a weighted average period of 1.15 years. The total fair value of stock options vested during 2010,
2009 and 2008 was $2.6 million, $2.5 million and $3.0 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
2010, 2009 and 2008. Share-based compensation expense for restricted stock issued to Directors was $0.1 million in each of 2010, 2009
and 2008.
In August 2010, the Company granted 175,000 restricted stock units under the 2010 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, other than rights to cash dividends, until common stock is distributed. The restricted
stock unit award was a non-performance award which vests in ten equal annual installments of 17,500 units beginning May 15, 2011 and
each May 15, 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 $0.3 million for the year
ended December 31, 2010.
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.
These shares are included in common stock in treasury at cost in the Company’s consolidated balance sheet. The authorization to
repurchase shares under this plan has expired.
The components of income before income taxes are as follows (in thousands):
The provision for income taxes consists of the following (in thousands):
Shares
Weighted
Average Grant-
Date Fair Value
Unvested at January 1, 2010
544,230
$
10.98
Granted
40,000
$
7.24
Vested
(237,279
)
$
11.02
Forfeited
(6,125
)
$
13.21
Unvested at December 31, 2010
340.826
$
10.47
9.
INCOME TAXES
Year Ended December 31,
2010
2009
2008
United States
$
43,386
$
54,468
$
61,220
Foreign
22,647
18,617
22,523
Total
$
66,033
$
73,085
$
83,743
Year Ended December 31,
2010
2009
2008
Current:
Federal
$
9,535
$
11,987
$
15,753
State
2,269
3,005
4,106
Foreign
7,106
6,204
4,844
Total current
18,910
21,196
24,703
Deferred:
Federal
4,712
4,271
2,242
State
(193
)
844
154
Foreign
53
589
3,801