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Table of Contents NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2013 . This amount changes based on the fair market value of the Company’
s stock. Total intrinsic value of options exercised for the year
ended December 31, 2013 , 2012 , and 2011 was $4.2 million , $8.1 million and $21.8 million , respectively.
The total fair value of options vested during the years ended December 31, 2013 , 2012 , and 2011 was $13.0 million , $11.1 million and
$9.8
million , respectively.
The following table summarizes significant ranges of outstanding and exercisable stock options as of December 31, 2013 :
RSU Activity
RSU activity under during the year ended December 31, 2013 was as follows:
Total intrinsic value of RSUs, or the release date fair value of RSUs, vested during the years ended December 31, 2013 , 2012 and 2011 was
$2.9
million , $3.7 million and $4.4 million
, respectively. The total fair value or RSUs, or the grant date fair value of RSUs, vested during the years ended
December 31, 2013 , 2012 and 2011 was $2.3 million , $3.0 million and $2.6 million , respectively.
Valuation and Expense Information
The Company measures stock-
based compensation at the grant date based on the fair value of the award. Estimated compensation cost relating to
restricted stock units (“RSUs”) is based on the closing fair market value of the Company’
s common stock on the date of grant. The fair value of
Employee Stock Purchase Plan (“ESPP”)
is based on the 15% discount at purchase, since the price of the shares is determined at the purchase date. The
fair value of each option award is estimated on the date of grant using a Black-Scholes-
Merton option valuation model that uses the assumptions noted
in the following table. The estimated 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 a
remaining
100
Options Outstanding
Options Exercisable
Range of Exercise Prices Shares
Outstanding
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price Per
Share
Shares
Exercisable
Weighted-
Average
Exercise
Price Per
Share
(In thousands)
(In years)
(In dollars)
(In thousands)
(In dollars)
$ 9.26 - $22.68
903
4.73
$
18.27
873
$
18.18
$23.25 - $31.31
849
5.73
29.58
617
29.23
$31.59 - $33.83
1,203
8.23
33.12
423
33.25
$33.92 - $38.01
959
6.72
35.56
629
35.39
$38.16 - $40.01
251
6.40
39.25
153
39.25
$9.26 - $40.01
4,165
6.50
$
30.11
2,695
$
28.29
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, 2012
112
$
28.36
RSUs granted
744
29.20
RSUs vested
(85
)
34.04
RSUs cancelled
(40
)
28.19
December 31, 2013
731
$
29.40
1.61
24,072