Stamps.com 2006 Annual Report Download - page 53

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STAMPS.COM INC.
NOTES TO FINANCIAL STATEMENTS
2. Summary of Significant Accounting Policies – (continued)
The following table summarizes stock option activity related to the Company’s plan for the year ended December 31, 2006:
The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the company’s closing stock price of
$15.75 at December 29, 2006, representing the last trading day of fiscal 2006, which would have been received by award holders had all award
holders exercised their awards that were in-the-money as of that date.
The weighted average grant date fair value of options granted during the years ended December 31, 2006, 2005 and 2004 were $13.41,
$9.34 and $5.81 respectively. The total intrinsic value of options exercised during the year ended December 31, 2006, 2005 and 2004 were
$11,460,570, $7,172,993 and $1,740,326, respectively.
The following table summarizes the status of the Company’s nonvested shares as of December 31, 2006:
As of December 31, 2006, there was approximately $3.8 million of total unrecognized compensation cost related to nonvested share-based
compensation arrangements, which is expected to be recognized over a weighted-average period of 2.8 years.
Treasury Stock
During the years ended December 31, 2006 and 2005, the Company repurchased approximately 1.6 million shares for $26.7 million and
139,000 shares for $2.3 million, respectively. The Company will consider repurchasing stock throughout the current repurchase program by
evaluating such factors as the price of the stock, the daily trading volume and the availability of large blocks of shares and any additional
constraints because of material inside information the Company may possess.
Segment Information
SFAS No. 131, “Disclosures about Segments of an Enterprise and Related Information” establishes standards of reporting information
regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim
financial reports issued to stockholders. The Company operates in a single segment.
F-13
Number
of Stock
Options
(in thousands)
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life
(in years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding at December 31, 2005
2,608
$
15.03
Granted
319
27.53
Exercised
(656
)
9.83
Forfeited or expired
(74
)
22.48
Balance at December 31, 2006
2,197
17.52
6.4
$
7,799
Exercisable at December 31, 2006
1,765
16.22
5.8
$
7,620
Number of
Stock Options
(in thousands)
Weighted
Average Grant
Date Fair Value
Nonvested at December 31, 2005
416
$
7.37
Granted
319
12.49
Vested
(229
)
8.12
Forfeited
(74
)
12.63
Nonvested at December 31, 2006
432
$
11.28