LeapFrog 2007 Annual Report Download - page 101

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LEAPFROG ENTERPRISES, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share and percent data)
The following table summarizes information about options outstanding at December 31, 2007:
Class A Options Outstanding Class A Options Exercisable
Range of Exercise Prices
Number of
Shares
(In Thousands)
Average
Remaining
Contractual
Life
(In Years)
Weighted
Average
Exercise
Price
Number of
Shares
(In Thousands)
Weighted
Average
Exercise
Price
$5.00 – $7.02 1,087 8.27 $ 6.54 304 $ 5.33
$7.22 – $9.33 1,095 9.07 $ 8.95 244 $ 9.23
$9.34 – $10.25 553 7.58 $10.04 275 $10.04
$10.30 – $10.30 1,200 8.51 $10.30 425 $10.30
$10.33 – $11.56 952 8.23 $10.91 412 $11.10
$11.86 – $12.50 1,000 7.22 $12.37 606 $12.37
$13.33 – $13.33 950 8.51 $13.33 336 $13.33
$13.50 – $16.67 1,090 8.39 $15.63 422 $15.32
$17.25 – $29.30 1,005 6.17 $24.55 980 $24.74
$29.74 – $44.60 160 5.82 $34.62 160 $34.62
Total: $5.00 – $44.60 9,092 8.00 $12.92 4,164 $15.32
These options will expire if not exercised by specific dates through December, 2017. During the year ended
December 31, 2007, 10 stock options expired and were cancelled. Option exercise prices for options exercised
during the three-year period ended December 31, 2007 ranged from $2.37 to $11.04.
Restricted Stock and Restricted Stock Unit Awards
Information with respect to restricted stock units as of December 31, 2007 is as follows:
In thousands, except per share amounts
Number of
Shares
Weighted Average
Grant-Date Fair
Value
Not Vested at December 31, 2006 ....................... 1,092 $10.59
Granted ............................................. 653 $ 8.37
Vested .............................................. (276) $10.20
Forfeited ............................................ (352) $10.83
Not Vested at December 31, 2007 ....................... 1,117 $ 9.31
The market value at December 31, 2007 of stock awards and restricted stock units that vested in 2007 is
$1,938. As of December 31, 2007, there was $8,123 of unrecognized compensation costs related to restricted
stocks and restricted stock unit awards granted under equity incentive plans. The unrecognized compensation
cost is expected to be recognized over a weighted average period of 1.59 years.
Performance Shares
Effective February 28, 2007, the Company terminated its performance share program after conducting a full
review of the total compensation components for key executives. The Company concluded that stock options
with a substantial portion of the strike price set “out-of-the-money” would provide adequate incentive to key
executives, without the related complexity of the performance share program. The performance plan had been
F-29