ServiceMagic 2012 Annual Report Download - page 97

IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
schedule for that particular grant as determined by the Committee. Broad-based stock option awards to date have generally vested in equal
annual installments over a four -year period and RSU awards currently outstanding generally vest in equal annual installments over a three -year
period, in each case, from the grant date. PSU awards to date generally cliff vest at the end of a two to three -year period from the date of grant.
In addition to equity awards outstanding under the two plans, stock options and other equity awards outstanding under terminated plans and
plans assumed in acquisitions are reflected in the information set forth below.
The amount of stock-based compensation expense recognized in the consolidated statement of operations is reduced by estimated
forfeitures, as the expense recorded is based on awards that are ultimately expected to vest. The forfeiture rate is estimated at the grant date
based on historical experience and revised, if necessary, in subsequent periods if actual forfeitures differ from the estimated rate.
The total income tax benefit recognized in the accompanying consolidated statement of operations for the years ended December 31,
2012 , 2011 and 2010 related to stock-based compensation is $31.3 million , $32.7 million and $32.2 million , respectively.
At December 31, 2012 , there is $92.4 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based
awards, which is expected to be recognized over a weighted average period of approximately 2.4 years.
Stock Options
A summary of changes in outstanding stock options is as follows:
The following table summarizes the information about stock options outstanding and exercisable at December 31, 2012 :
The aggregate intrinsic value in the table above represents the total pre-
tax intrinsic value (the difference between IAC's closing stock price
December 31, 2012
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
(Shares and intrinsic value in thousands)
Outstanding at January 1, 2012
10,525
$
24.88
Granted
3,639
47.42
Exercised
(2,974
)
19.57
Forfeited
(643
)
33.69
Expired
(87
)
25.83
Outstanding at December 31, 2012
10,460
$
33.68
7.2
$
146,556
Options exercisable
4,518
$
25.33
5.2
$
99,010
Options Outstanding Options Exercisable
Range of Exercise Prices
Outstanding at
December 31,
2012
Weighted-
Average
Remaining
Contractual
Life in Years
Weighted-
Average
Exercise
Price
Exercisable at
December 31,
2012
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
(Shares in thousands)
$0.01 to $10.00
10
0.8
$
4.63
10
0.8
$
4.63
$10.01 to $20.00
1,549
5.1
16.84
1,468
5.0
16.83
$20.01 to $30.00
2,099
5.8
22.29
1,551
5.3
22.40
$30.01 to $40.00
2,594
8.2
32.36
768
8.0
32.27
$40.01 to $50.00
3,878
8.0
45.38
721
2.6
41.81
$50.01 to $60.00
330
9.1
59.15
—
—
—
10,460
7.2
$
33.68
4,518
5.2
$
25.33