Digital River 2006 Annual Report Download - page 102

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A Summary of the changes in outstanding options is as follows:
Shares
Available
for Grant
Options
Outstanding
Options
Price
per Share
Weighted
Average
Price
per Share
Balance, December 31, 2003 ................. 3,461,199 6,652,096 $ 1.69 - $31.13 $10.87
Granted ................................ (1,603,600) 1,603,600 20.60 - 24.86 22.83
Exercised ............................... (1,942,212) 2.59 - 31.13 10.15
Canceled/expired ......................... 596,944 (596,944) 2.59 - 31.13 15.93
Balance, December 31, 2004 ................. 2,454,543 5,716,540 $ 1.69 - $31.13 $13.94
Granted ................................ (846,678) 846,678 23.90 - 30.69 28.15
Exercised ............................... (1,719,114) 1.69 - 30.69 13.50
Canceled/expired ......................... 320,719 (320,719) 3.88 - 27.40 15.15
Balance, December 31, 2005 ................. 1,928,584 4,523,385 $ 2.59 - $31.13 $16.69
Granted ................................ (395,000) 395,000 29.75 - 57.36 38.64
Restricted stock effect on shares available for
grant ................................. (134,250) N/A N/A N/A
Exercised ............................... (1,219,736) 2.59 - 45.24 17.31
Canceled/expired ......................... 140,866 (140,866) 2.59 - 30.69 22.57
Balance, December 31, 2006 ................. 1,540,200 3,557,783 $ 2.59 - $57.36 $18.68
The following table summarizes significant ranges of outstanding and exercisable options under our 1998
Plan as of December 31, 2006:
Exercise Price
Number
Outstanding
Weighted
Average
Life Remaining
Weighted
Average
Price
Aggregate
Intrinsic
Value
Number
Exercisable
Weighted
Average
Price
Aggregate
Intrinsic
Value
Options Outstanding Options Exercisable
$ 2.59 - $ 3.88 122,433 1.8 years $ 2.96 $ 6,468,315 122,433 $ 2.96 $ 6,468,315
4.56 - 7.55 806,923 4.2 years 5.32 40,723,068 806,923 5.32 40,723,068
9.12 - 13.92 729,486 5.8 years 11.65 32,199,619 580,402 11.86 25,497,181
16.72 - 22.98 627,899 6.8 years 22.20 21,089,713 412,757 22.52 13,733,276
23.01 - 31.13 929,445 8.1 years 27.65 26,158,720 217,766 27.88 6,077,869
31.14 - 57.36 341,597 9.3 years 39.98 5,400,636 41,003 35.39 836,605
$ 2.59 - $57.36 3,557,783 6.4 years $18.68 $132,040,071 2,181,284 $13.00 $93,336,315
The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on
options with an exercise price less than the Company’s closing stock price of $55.79 as of December 31,
2006, which would have been received by the option holders had those option holders exercised their options
as of that date. The total intrinsic value of options exercised during the twelve months ended December 31,
2006, 2005 and 2004 were $38.6 million, $41.4 million and $43.7 million, respectively, determined as of the
date of exercise. The weighted average life remaining on exercisable options is 5.3 years.
Restricted stock awards are subject to forfeiture if employment terminates prior to the release of the
restrictions. During the vesting period, ownership of the shares cannot be transferred. Restricted stock is
considered issued and outstanding at the grant date and has the same dividend and voting rights as other
98
DIGITAL RIVER, INC.
Notes to Consolidated Financial Statements — (Continued)