CompUSA 2010 Annual Report Download - page 96

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45
The following table reflects the activity for all unvested stock options during 2010:
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
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.
9. INCOME TAXES
The components of income before income taxes are as follows (in thousands):
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