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EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Options and Warrants Outstanding
The following table summarizes information concerning stock option and warrant activity during the years ended December 31, 2002,
2003 and 2004:
The following table summarizes the status of the Company’s stock options and warrants as of December 31, 2004:
Deferred Compensation Plan
During the year ended December 31, 2003, the Company adopted the Deferred Compensation Plan for Directors and Certain Key
Employees (the “Deferred Compensation Plan”). The Deferred Compensation Plan permits members of the Board of Directors and eligible
employees to elect to defer receipt of shares of common stock pursuant to vested restricted stock units and various cash consideration, such as
directors’ fees and bonuses. The cash consideration is converted into phantom share units at the closing price on the date the consideration
would otherwise be paid, and vested restricted stock units are converted into phantom share units on a one-for-one basis. Phantom share units
are fully vested at the
83
Year Ended December 31,
2002
2003
2004
Weighted
Weighted
Weighted
Average
Average
Average
Stock Options
Exercise
Stock Options
Exercise
Stock Options
Exercise
and Warrants
Price
and Warrants
Price
and Warrants
Price
(shares in thousands)
Outstanding at beginning of year
21,022
$
15.66
28,356
$
12.62
22,742
$
11.93
Granted
10,925
7.26
2,433
7.07
3,852
9.53
Exercised
(307
)
3.05
(1,010
)
3.34
(2,120
)
7.44
Canceled
(3,284
)
15.14
(7,037
)
14.25
(3,745
)
13.59
Outstanding at end of year
28,356
12.62
22,742
11.93
20,729
11.64
Options exercisable at year-end
11,688
12,757
12,535
Weighted-average grant date fair value
of options granted during
the year
$
5.17
$
4.34
$
4.71
Stock Options and Warrants Outstanding
Stock Options and
Weighted
Warrants Exercisable
Average
Weighted
Weighted
Remaining
Average
Average
Range of
Number
Contractual
Exercise
Number
Exercise
Exercise Prices
Outstanding
Life
Price
Exercisable
Price
(in thousands)
(in thousands)
$ 1.06 to $ 5.10
1,934
5.59
$
4.19
986
$
3.31
5.31 to 5.98
2,521
7.84
5.64
1,092
5.63
6.13 to 8.47
1,877
7.14
7.11
1,079
7.23
8.90 to 9.01
3,083
9.45
9.00
95
8.90
9.25 to 10.06
5,648
6.20
9.90
4,615
9.93
10.38 to 15.00
1,950
7.01
12.10
1,070
12.55
15.63 to 24.92
1,539
4.94
19.33
1,421
19.54
25.13 to 51.44
2,177
4.68
31.56
2,177
31.56
$ 1.06 to $51.44
20,729
6.74
$
11.64
12,535
$
13.86