Memorex 2011 Annual Report Download - page 71

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes outstanding, exercisable options and options expected to vest as of
December 31, 2011:
Exercisable Options Options Expected to Vest
Range of Exercise
Prices
Stock
Options
Weighted
Average
Remaining
Contractual
Life (Years)
Weighted
Average
Exercise
Price
Stock
Options
Weighted
Average
Remaining
Contractual
Life (Years)
Weighted
Average
Exercise
Price
$6.17 to $14.15 ........................... 909,873 6.2 $ 9.95 1,910,343 8.8 $ 9.67
$14.16 to $19.20 .......................... — — — — — —
$19.21 to $23.95 .......................... 104,468 0.7 22.83 3,035 6.6 20.64
$23.96 to $28.70 .......................... 731,717 4.9 24.37 135,077 6.3 24.62
$28.71 to $39.38 .......................... 1,180,329 2.8 34.93 — — —
$39.39 to $41.75 .......................... 388,145 3.1 41.34 — — —
$41.76 to $46.97 .......................... 38,000 1.9 44.45 — — —
$6.17 to $46.97 ......................... 3,352,532 4.1 $26.32 2,048,455 8.7 $10.67
The outstanding options are non-qualified and generally have a term of ten years. For employees, the options granted
prior to May 2011 generally become exercisable and vest 25 percent per year beginning on the first anniversary of the grant
date, subject to the employee’s continuing service to the Company. Grants during and after May 2011 become exercisable
and vest 33 percent per year beginning on the first anniversary of the grant date, subject to the employee’s continuing service
to the Company. For directors, the options generally become exercisable in full on the first anniversary of the grant date.
Total related stock-based compensation expense recognized in the Consolidated Statements of Operations for the years
ended December 31, 2011, 2010 and 2009 was $4.1 million, $3.8 million and $4.9 million, respectively. This expense would
result in related tax benefits of $1.3 million, $1.2 million and $1.6 million for the years ended December 31, 2011, 2010 and
2009, respectively. However, these tax benefits are included in the U.S. deferred tax assets which are subject to a full
valuation allowance, and due to the valuation allowance, we did not recognize the related tax benefit in 2011 and 2010.
On March 18, 2010, we announced the retirement of our former Vice Chairman and Chief Executive Officer, effective
May 5, 2010. In connection with his retirement from the Company, the Board of Directors also determined to accelerate the
vesting of his outstanding unvested options and restricted stock. As a result, additional compensation expense of $0.8 million
was recognized during the first quarter of 2010. The related tax benefit was $0.3 million for the year ended December 31,
2010. This tax benefit was included in the U.S. deferred tax assets that were subject to the valuation allowance established
during 2010.
No related stock-based compensation was capitalized as part of an asset for the years ended December 31, 2011, 2010
or 2009. As of December 31, 2011, there was $7.2 million of total unrecognized compensation expense related to non-vested
stock options granted under our Stock Plans. That expense is expected to be recognized over a weighted average period of
2.21 years.
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