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The following table summarizes the options granted, exercised and cancelled in 2005, 2006 and 2007:
Number of
Shares
Weighted-
Average
Exercise
Price Per
Share
Weighted-
Average
Remaining
Contractual
Life (years)
Aggregate
Intrinsic
Value
Outstanding, January 1, 2005 ............................ 5,138,176 1.56
Granted ............................................. 501,900 11.83
Exercised ............................................ (2,786,070) 1.49
Forfeited ............................................ (121,169) 0.80
Expired ............................................. — —
Outstanding, December 31, 2005 ......................... 2,732,837 3.55
Granted ............................................. — —
Exercised ............................................ (1,324,174) 2.74
Forfeited ............................................ (43,335) 15.25
Expired ............................................. — —
Outstanding, December 31, 2006 ......................... 1,365,328 $ 3.97
Granted ............................................. — —
Exercised ............................................ (412,076) 4.69
Forfeited ............................................ (29,168) 21.23
Expired ............................................. — —
Outstanding, December 31, 2007 ......................... 924,084 $ 3.10 6.23 $22,134
Exercisable at December 31, 2007 ........................ 804,083 $ 2.14 6.07 $20,008
Expected to vest at December 31, 2007 .................... 920,484 $ 3.07 6.21 $22,071
The Company adopted SFAS No. 123R, effective January 1, 2006. Prior to January 1, 2006, the Company
applied the intrinsic value method of accounting for all stock-based employee compensation in accordance with
APB Opinion No. 25, and related interpretations. The Company elected to use the modified prospective method
for adopting SFAS No. 123R. Under this method, the provisions of SFAS No. 123R apply to all awards granted
or modified after the date of adoption. Accordingly, prior periods have not been restated. SFAS No. 123R also
requires the benefits of tax deductions in excess of recognized compensation expense be recognized as financing
cash flows, rather than as operating cash flows as prescribed under the prior accounting rules. This requirement
reduces net operating cash flows and increases net financing cash flows in periods after adoption.
In 2007 and 2006, the Company recorded pre-tax compensation charges of $1,764 and $2,387, respectively, in
the accompanying consolidated statement of operations for the portion of previously granted stock option awards
that vested after January 1, 2006. There were no option grants in 2007 or 2006. The weighted-average grant date
fair value of the options issued in 2005 was $10.08. The total intrinsic value of stock options exercised in 2007,
2006 and 2005 was $21,822, $69,088 and $48,664, respectively.
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