Netgear 2009 Annual Report Download - page 94

Table of Contents
Total intrinsic value of restricted stock units vested during the years ended December 31, 2009, 2008, and 2007 was $1.4 million, $1.2
million and $1.7 million, respectively.
The total fair value of restricted stock units vested during the year ended December 31, 2009, 2008 and 2007 was $2.4 million, $1.7
million and $1.2 million, respectively.
As of December 31, 2009, $3.0 million of total unrecognized compensation cost related to non-vested restricted stock units is expected to
be recognized over a weighted-average period of 1.01 years.
Total fair value of stock-based compensation awards expensed for the years ended December 31, 2009, 2008, and 2007 was $7.8 million,
$8.5 million, and $6.6 million, respectively, net of tax. The actual excess tax benefit recognized for the tax deduction arising from the exercise of
stock-based compensation awards for the years ended December 31, 2009, 2008, and 2007 totaled $136,000, $81,000, and $8.4 million,
respectively.
Common Stock Repurchase Programs
In October 21, 2008, the Company’s Board of Directors authorized management to repurchase up to 6,000,000 shares of the Company’s
outstanding common stock. Under this authorization, the timing and actual number of shares subject to repurchase are at the discretion of
management and are contingent on a number of factors, such as levels of cash generation from operations, cash requirements for acquisitions and
the price of the Company’s common stock. The Company did not repurchase any shares under this authorization during the year ended
December 31, 2009. During the fiscal year ended December 31, 2008, the Company repurchased approximately 1.2 million shares or $12.0
million of common stock under this repurchase authorization.
In addition, the Company repurchased approximately 22,000 shares, or $282,000 of common stock under a repurchase program to help
administratively facilitate the withholding and subsequent remittance of personal income and payroll taxes for individuals receiving restricted
stock units during the year ended December 31, 2009. Similarly, during the years ended December 31, 2008 and December 31, 2007, the
Company repurchased approximately 9,000 shares and 5,000 shares, respectively, or $206,000 and $150,000 of common stock, respectively,
under the same program to help facilitate tax withholding for restricted stock units.
These shares were retired upon repurchase. The Company’s policy related to repurchases of its common stock is to charge the excess of
cost over par value to retained earnings. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934,
as amended.
Note 11—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 and customer service activities through several small sales offices in Europe, Middle-East
and Africa (“EMEA”) and Asia as well as outsourced distribution centers.
For reporting purposes revenue is attributed to each geographic location based on the geographic location of the customer. Net revenue by
geography comprises gross revenue less such items as sales incentives deemed to be a reduction of net revenue, sales returns and price
protection, which reduce gross revenue.
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