ServiceMagic 2009 Annual Report Download - page 106

Download and view the complete annual report

Please find page 106 of the 2009 ServiceMagic annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 13—STOCK-BASED COMPENSATION (Continued)
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between IAC's closing stock price
on the last trading day of 2009 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the
option holders had all option holders exercised their options on December 31, 2009. This amount changes based on the fair market value of
IAC's common stock. The total intrinsic value of stock options exercised during the years ended December 31, 2009, 2008 and 2007 was
$2.8 million, $7.6 million and $223.6 million, respectively.
Cash received from stock option exercises and the related tax benefit realized for the years ended December 31, 2009, 2008 and 2007: were
$3.8 million and $0.8 million; $8.5 million and $2.1 million; and $39.3 million and $88.2 million, respectively.
The following table summarizes the information about stock options outstanding and exercisable as of December 31, 2009:
Restricted Stock, Restricted Stock Units and Performance Stock Units
RSUs are awards in the form of phantom shares or units, denominated in a hypothetical equivalent number of shares of IAC common stock
and with the value of each RSU equal to the fair value of IAC common stock at the date of grant. RSUs may be settled in cash, stock or both, as
determined by the Committee at the time of grant. With the exception of awards to non-U.S. employees, which are settled in cash, all awards are
settled in stock. Each restricted stock, RSU and PSU grant is subject to service-based vesting, where a specific period of continued employment
must pass before an award vests. PSUs also include performance-based vesting, where certain performance targets set at the time of grant must
be achieved before an award vests. The Company recognizes expense for all restricted stock, RSUs and PSUs for which vesting is considered
probable. For restricted stock and RSU grants to U.S. employees, the accounting charge is measured at the grant date as the fair value of IAC
common stock and expensed ratably as non-cash compensation over the vesting term. For PSU grants to U.S. employees, the expense is
measured at the grant date as the fair value of IAC common stock and expensed as non-cash compensation over the vesting period if the
performance targets are considered probable of being achieved.
The expense associated with RSU awards to non-U.S. employees is initially measured at fair value at the grant date and expensed ratably
over the vesting term, subject to mark-to-market adjustments for
96
Options Outstanding Options Exercisable
Range of Exercise Prices
Outstanding at
December 31,
2009
Weighted-
Average
Remaining
Contractual
Life in Years
Weighted-
Average
Exercise
Price
Exercisable at
December 31,
2009
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
(Shares in thousands)
$0.01 to $10.00
182
2.7
6.30
182
2.7
6.30
$10.01 to $20.00
6,922
8.3
16.39
1,875
7.0
16.27
$20.01 to $30.00
5,563
6.5
21.86
2,534
4.5
22.79
$30.01 to $40.00
1,267
5.3
31.09
67
3.5
31.69
$40.01 to $50.00
726
5.2
41.89
27
0.2
44.25
$50.01 to $60.00
6
0.2
59.50
0.2
59.50
14,666
7.1
20.89
4,691
5.3
19.85