Circuit City 2011 Annual Report Download - page 52

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The total intrinsic value of options exercised was $0.7 million, $3.2 million and $2.0 million respectively, for 2011, 2010 and 2009.
The following table summarizes information about options vested and exercisable or nonvested that are expected to vest (nonvested outstanding
less expected forfeitures) at December 31, 2011:
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 2011 and the exercise price) that would have been received by the option holders had all options been exercised on
December 31, 2011. 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 2011:
At December 31, 2011, there was approximately $1.9 million of unrecognized compensation costs related to unvested stock options, which is
expected to be recognized over a weighted average period of 1.64 years. The total fair value of stock options vested during 2011, 2010 and 2009
was $2.2 million, $2.6 million and $2.5 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 former officer and director (See Note 8 of
Notes to Consolidated Financial Statements). 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 vested 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 $0.1 million in 2011,
and $0.6 million in each of 2010 and 2009. As part of the settlement agreement (see Note 8 of Notes to Consolidated Financial Statements),
300,000 shares or units of restricted stock were terminated and of no further force and effect.
Share-based compensation expense for restricted stock issued to Directors was $0.1 million in each of 2011, 2010 and 2009.
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 $0.6 million for the year ended December 31, 2011.
In October 2011 and November 2011, the Company granted 100,000 restricted stock units under the 2010 Plan to two key employees, one of
whom is 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 10,000 units beginning October 3,
2012 and November 14, 2012, respectively, and each October 3 and November 14, respectively, 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 these restricted stock awards was approximately $0.1 million for the year ended December 31, 2011.
Table of Contents
Range of Exercise
Prices
Number
Exercisable
Weighted
Average
Exercise
Price
Weighted Average
Remaining
Contractual Life
Aggregate
Intrinsic
Value (in
thousands)
$
1.76
to
$
5.00
137,983
$
2.46
.80
$
1,925
$
5.01 to $
15.00
607,406
$
11.12
7.06
3,215
$
15.01
to
$
20.00
416,970
$
18.70
5.52
67
$
20.01 to $
20.15
100,000
$
20.15
5.05
-
$
1.76 to $
20.15
1,262,359
$
13.39
5.71
$
5,207
Shares
Weighted
Average
Grant-
Date Fair
Value
Unvested at January 1, 2011
340,826
$
10.47
Granted
277,000
$
7.81
Vested
(185,250
)
$
11.61
Forfeited
(61,826
)
$
8.22
Unvested at December 31, 2011
370,750
$
8.29