Netgear 2011 Annual Report Download - page 107

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Table of Contents
RSU Activity
RSU activity under during the years ended December 31, 2011, 2010, and 2009 were as follows:
Total intrinsic value of RSUs vested during the years ended December 31, 2011, 2010 and 2009 was $4.4 million, $3.1 million and $1.4
million, respectively. The total fair value of RSUs vested during the years ended December 31, 2011, 2010 and 2009 was $2.6 million, $2.6
million and $2.4 million, respectively.
Valuation and Expense Information
The fair value of each option award granted under the Company’s ESPP equals the 15% discount at purchase. The fair value of each
restricted stock unit under all share-
based compensation plans equals the fair value of NETGEAR stock on the date of the grant. The fair value of
each option award granted under all other share-based compensation plans is estimated on the date of grant using the Black-Scholes-Merton
option valuation model and the weighted average assumptions in the following table. The expected term of options granted is derived from
historical data on employee exercise and post-vesting employment termination behavior. The risk free interest rate is based on the implied yield
currently available on U.S. Treasury securities with an equivalent remaining term. Expected volatility is based on a combination of the historical
volatility of the Company’s stock as well as the historical volatility of certain of the Company’s industry peers’ stock. The Company estimated
the forfeiture rate for the years ended December 31, 2011, 2010 and 2009 based on its historical experience.
The weighted average estimated fair value of options granted during the years ended December 31, 2011, 2010 and 2009 including options
granted under the ESPP and not including restricted stock units, were $14.29, $10.80 and $6.10, respectively.
103
Outstanding RSUs
Number of
Shares
Weighted
Average Grant
Date Fair
Value Per
Share
Weighted Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
(In thousands)
(In dollars)
(In years)
(In thousands)
December 31, 2008
235
$
25.55
RSUs granted
171
12.24
RSUs vested
(104
)
23.43
RSUs cancelled
(15
)
19.36
December 31, 2009
287
18.71
RSUs granted
48
22.73
RSUs vested
(133
)
19.30
RSUs cancelled
(3
)
11.41
December 31, 2010
199
19.40
RSUs granted
113
34.78
RSUs vested
(118
)
21.64
RSUs cancelled
(17
)
18.38
December 31, 2011
177
$
27.86
1.60
$
5,939
Stock Options Granted Under non
-
ESPP Plans
Year Ended December 31,
2011
2010
2009
Expected life (in years)
4.4
4.4
4.4
Risk
-
free interest rate
1.63
%
1.74
%
1.73
%
Expected volatility
50.31
%
49.87
%
50.48
%
Dividend yield
—
—
—