Tesla 2011 Annual Report Download - page 135

Table of Contents
1.7%, expected term of 4.1 years, expected volatility of 70% and dividend yield of 0%. Stock-based compensation expense related to
Mr. Musk’s grants was $9.2 million for the year ended December 31, 2010.
Included in our June 2010 and September 2010 stock option grants were 666,300 and 20,000, respectively, of stock options granted to
various members of our senior management with a vesting schedule based entirely on the attainment of the same performance objectives as those
outlined for Mr. Musk above. As of December 31, 2010, the first performance milestone was achieved and the remaining performance
milestones were considered probable of achievement. For the year ended December 31, 2010, we recognized $8.9 million of stock-based
compensation expense related to the attainment of performance objectives.
The following table summarizes the consolidated stock-based compensation expense by line item in the consolidated statements of
operations (in thousands):
We realized no income tax benefit from stock option exercises in each of the periods presented due to recurring losses and valuation
allowances. As required, we present excess tax benefits from the exercise of stock options, if any, as financing cash flows rather than operating
cash flows.
As of December 31, 2010, we had $34.6 million of total unrecognized compensation expense, net of estimated forfeitures, that will be
recognized over a weighted-average period of 2.6 years.
Employee Stock Purchase Plan
Concurrent with the effectiveness of our registration statement on Form S-1 on June 28, 2010 (see Note 9), we established the 2010
Employee Stock Purchase Plan (the ESPP) which is intended to qualify under Section 423 of the Internal Revenue Code of 1986. Under the
ESPP, employees are eligible to purchase common stock through payroll deductions of up to 15% of their eligible compensation, subject to any
plan limitations. The purchase price of the shares on each purchase date is equal to 85% of the lower of the fair market value of our common
stock on the first and last trading days of each six-month offering period. Through December 31, 2010, no shares have yet been issued under the
ESPP. A total of 1,666,666 shares of common stock have been reserved for issuance under the ESPP as of December 31, 2010.
11. Income Taxes
No provision for U.S. income taxes has been made due to cumulative losses since the commencement of operations.
A provision for income taxes of $0.2 million, $26,000 and $0.1 million, has been recognized for the years ended December 31, 2010, 2009
and 2008, respectively, related primarily to our subsidiaries located outside of the United States. Our net loss before provision for income taxes
for the years ended December 31, 2010, 2009 and 2008, is as follows (in thousands):
134
2010
2009
2008
Cost of sales
$
243
$
61
$
26
Research and development
4,139
376
125
Selling, general and administrative
16,774
997
286
Total
$
21,156
$
1,434
$
437
2010
2009
2008
Domestic
$
154,734
$
56,983
$
82,963
International
(579
)
(1,269
)
(278
)
Loss before income taxes
$
154,155
$
55,714
$
82,685