Earthlink 2012 Annual Report Download - page 100

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Table of Contents EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Restricted Stock Units
The following table summarizes restricted stock unit activity as of and for the year ended December 31, 2012 :
The fair value of restricted stock units is determined based on the closing price of EarthLink’
s common stock on the grant date. The
weighted-average grant date fair value of restricted stock units granted during the years ended December 31, 2010, 2011 and 2012 was $8.46
,
$8.22 and $7.51 , respectively. As of December 31, 2012 , there was $12.5 million
of total unrecognized compensation cost related to nonvested
restricted stock units. That cost is expected to be recognized over a weighted-average period of 1.7 years
. The total fair value of shares vested
during the years ended December 31, 2010, 2011 and 2012 was $10.8 million , $15.6 million and $7.4 million
, respectively, which represents
the closing price of the Company’s common stock on the vesting date multiplied by the number of restricted stock units that vested.
13. Profit Sharing Plans
The Company sponsors the EarthLink, Inc. 401(k) Plan ("Plan"), which qualifies as a deferred salary arrangement under Section 401(k)
of the Internal Revenue Code. Under the Plan, participating employees may defer a portion of their pretax earnings up to the Internal Revenue
Service annual contribution limit. The Company makes a matching contribution of 50% of the first 6%
of base compensation that a participant
contributes to the Plan. The Company's matching contributions vest over four years
from the participant's date of hire. The Company contributed
$0.9 million , $3.2 million and $3.9 million during the years ended December 31, 2010, 2011 and 2012 , respectively.
14. Income Taxes
The following table presents the components of the income tax (provision) benefit for the years ended December 31, 2010, 2011 and
2012 :
89
Restricted
Stock Units
Weighted
Average
Grant Date
Fair Value
(in thousands)
Outstanding as of December 31, 2011
2,606
$
8.25
Granted
1,916
7.51
Vested
(974
)
8.34
Forfeited
(567
)
7.77
Outstanding as of December 31, 2012
2,981
$
7.90
Year Ended December 31,
2010
2011
2012
(in thousands)
Current
Federal
(3,026
)
(1,491
)
$
(159
)
State
(4,242
)
(2,286
)
1,383
Total Current
(7,268
)
(3,777
)
1,224
Deferred
Federal
(46,909
)
(17,889
)
(1,174
)
State
(2,627
)
1,764
2,881
Total Deferred
(49,536
)
(16,125
)
1,707
Total income tax (provision) benefit
(56,804
)
(19,902
)
$
2,931