Overstock.com 2011 Annual Report Download - page 132

Table of Contents
Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
17. STOCK-BASED AWARDS (Continued)
The following is a summary of restricted stock unit activity (amounts in thousands, except per share data):
2011 2010 2009
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 685 $ 12.08 640 $ 11.35 449 $ 12.69
Granted at fair
value 268 15.47 302 13.17 366 10.15
Vested (318) 12.20 (185) 11.52 (110) 12.64
Forfeited (113) 13.88 (72) 11.50 (65) 11.55
Outstanding—end
of year 522 $ 13.40 685 $ 12.08 640 $ 11.35
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, 2011, 2010 and 2009, we recorded stock based compensation related to restricted stock units of $2.8 million,
$3.5 million and $2.6 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, 2011, there were 522,000 restricted stock units that remained outstanding. On January 24, 2012, we granted 681,000 additional
restricted stock units.
18. EMPLOYEE RETIREMENT PLAN
We have a 401(k) defined contribution plan which permits participating employees to defer a portion 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
2011 and 2010 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 $991,000, $770,000 and $647,000 for the years ended
December 31, 2011, 2010 and 2009, respectively. In addition, discretionary contributions totaling zero, $471,000, and $885,000 for the years ended
December 31, 2011, 2010 and 2009, respectively, were made to eligible participants as of the end of each respective calendar year.
In December 2009, we implemented a Non Qualified Deferred Compensation plan for senior management. The plan allows eligible members of senior
management to defer their receipt of compensation from us, subject to the restrictions contained in the plan. Participants are 100% vested in their deferred
compensation amounts and the associated gains or losses. For our contributions, if any, and the associated gains or losses, the participants shall vest in those
deferred compensation amounts according to a vesting schedule that we shall determine at the time our contribution is made. As of December 31, 2011, we
have not made any contributions into the NQDC Plan. Participants are generally eligible to receive distributions from the plan two plan years subsequent to
the plan year their initial deferral contribution is made. Deferred compensation amounts are held in a "rabbi trust," which invests primarily in mutual funds.
The trust assets, which consist primarily of mutual funds, are
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