Overstock.com 2010 Annual Report Download - page 129

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Table of Contents
Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
18. STOCK-BASED AWARDS (Continued)
The following is a summary of restricted stock unit activity (amounts in thousands, except per share data):
2010 2009 2008
Units
Weighted
Average
Grant Date
Fair Value Units
Weighted
Average
Grant Date
Fair Value Units
Weighted
Average
Grant Date
Fair Value
Outstanding—
beginning of year 640 $ 11.35 449 $ 12.69 — $ —
Granted at fair
value 302 13.17 366 10.15 491 12.64
Vested (185) 11.52 (110) 12.64 — —
Forfeited (72) 11.50 (65) 11.55 (42) 12.13
Outstanding—end of
year 685 $ 12.08 640 $ 11.35 449 $ 12.69
The restricted stock units vest over three years at 25% at the end of the first year, 25% at the end of the second year and 50% at the end of the third year.
During the years ended December 31, 2010, 2009 and 2008, we recorded stock based compensation related to restricted stock units of $3.5 million,
$2.6 million and $1.4 million, respectively. Changes to the forfeiture rate are accounted for as a cumulative effect of change in the period of such change.
At December 31, 2010, there were 685,000 restricted stock units that remained outstanding. On January 22, 2011, we granted 225,000 additional
restricted stock units.
Performance Share Plan
In January 2006, the Board of Directors and Compensation Committee adopted the Overstock.com Performance Share Plan (the "Plan") and approved
grants to executive officers and certain employees. The Plan provided for a three-year period for the measurement of our attainment of the performance goal
described in the form of grant.
During the year ended December 31, 2008, we reversed the $1.0 million cumulative total of compensation expense accrued under the Plan as the Board
determined no payments would be made under the Plan. The Plan expired December 31, 2008.
19. EMPLOYEE RETIREMENT PLAN
We have a 401(k) defined contribution plan which permits participating employees to defer up to a maximum of 25% of their compensation, subject to
limitations established by the Internal Revenue Code. Employees who have completed a half-year of service and are 21 years of age or older are qualified to
participate in the plan. We match 50% of the first 6% of each participant's contributions to the plan. Beginning in 2006 through January 2008, our matching
contributions were made in common stock issued from treasury. For the remainder of 2008, the matching contributions were made in cash. Our matching
contributions for 2010 and 2009 were made in cash and common stock issued from treasury. Participant contributions are immediately vested. Our
contributions vest based on the participant's years of service at 20% per year over five years. Our matching contribution totaled $770,000, $647,000 and
$570,000 for the years ended December 31, 2010, 2009 and 2008, respectively. In addition, discretionary contributions of $471,000 for 2010, $885,000 for
2009 and zero for 2008 were made to eligible participants as of the end of each respective calendar year.
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