Netgear 2007 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2007 Netgear annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

Table of Contents
NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Additional information regarding stock options outstanding under the Company’s Stock Option Plans as of
December 31, 2006 is as follows:
As of December 31, 2006, $15.1 million of total unrecognized compensation cost related to stock options is
expected to be recognized over a weighted-average period of 1.72 years.
Cash received from option exercises and purchases under the ESPP for the year ended December 31, 2006 was
$8.5 million. The actual excess tax benefit recognized for the tax deduction arising from the exercise of stock-based
compensation awards for the year ended December 31, 2006 totaled $4.2 million.
Nonvested restricted stock awards as of December 31, 2006 and changes during the year ended December 31,
2006 were as follows:
As of December 31, 2006, $1.9 million of total unrecognized compensation cost related to nonvested restricted
stock awards is expected to be recognized over a weighted-average period of 1.59 years.
Note 8 — Segment Information, Operations by Geographic Area and Customer Concentration:
Operating segments are components of an enterprise about which separate financial information is available and
is regularly evaluated by management, namely the chief operating decision maker of an organization, in order to
make operating and resource allocation decisions. By this definition, the Company operates in one business segment,
which comprises the development, marketing and sale of networking products for the small business and home
markets. The Company’s primary headquarters and a significant portion of its operations are located in the United
States. The Company also conducts sales, marketing, customer service activities and certain distribution
65
Options Outstanding
Options Exercisable
Weighted Average
Weighted
Weighted
Remaining
Average
Average
Number
Contractual Life
Exercise
Number
Exercise
Range of Exercise Prices
Outstanding
(In Years)
Price
Outstanding
Price
$ 1.29
-
$ 2.99
81,888
2.6
$
1.29
81,888
$
1.29
$ 3.00
-
$ 5.99
830,138
3.4
$
4.53
830,138
$
4.53
$ 6.00
-
$ 8.99
205,495
4.8
$
7.54
202,521
$
7.53
$ 9.00
-
$11.99
183,536
7.0
$
10.12
121,156
$
10.35
$12.00
-
$14.99
253,812
7.3
$
13.86
187,127
$
13.80
$15.00
-
$17.99
658,928
7.4
$
15.69
564,417
$
15.57
$18.00
-
$20.99
954,158
9.1
$
19.42
335,519
$
19.51
$21.00
-
$23.99
430,012
9.2
$
22.44
63,962
$
21.23
$24.00
-
$26.39
336,490
10.0
$
26.39
0
N/A
$ 1.29
-
$26.39
3,934,457
7.1
$
14.79
2,386,728
$
10.86
Weighted
Average
Grant Date
Shares
Fair Value
Nonvested outstanding at December 31, 2005
—
$
—
Granted
114,000
22.52
Vested
—
—
Forfeited
—
—
Nonvested outstanding at December 31, 2006
114,000
$
22.52