Travelzoo 2012 Annual Report Download - page 121

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forfeiture rate is different from what we have anticipated, stock-based compensation related to these options will be different from our
expectations.
Option activity as of December 31, 2012 and changes during the years ended December 31, 2010, 2011, and 2012 were as follows:
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing
stock price on the last trading day of fiscal year 2012, 2011, and 2010 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, 2012, 2011, and 2010. This
amount changes based on the fair market value of the Company’s stock. The Company’s policy is to issue shares from the authorized shares to
fulfill stock option exercises.
The total intrinsic value of options exercised in the year ended December 31, 2011 was $628,000 .
Outstanding options at December 31, 2012 were as follows:
Note 7: Stock Repurchase Program
In July 2012, the Company announced a stock repurchase program authorizing the repurchase of up to 1,000,000 shares of the Company’s
outstanding common stock. The repurchase program assists in offsetting the impact of dilution from employee equity compensation and for
capital allocation purposes. Management is allowed discretion in the execution of the repurchase program based upon market conditions and
consideration of capital allocation. During the three months ended September 30, 2012 , the Company purchased 161,000 shares of common
stock for an aggregate purchase price of $3.6 million . The 161,000 shares repurchased were retired as of September 30, 2012 . During the three
months ended December 31, 2012 , the Company purchased 439,000 shares of common stock for an aggregate purchase price of $ 7.9 million .
The 439,000 shares repurchased shares were recorded as part of treasury stock as of December 31, 2012 .
63
Shares
Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual Life
Aggregate
Intrinsic
Value
(In thousands)
Outstanding at January 1, 2010
317,725
$
14.26
2.09 years
$
9,900
Outstanding at December 31, 2010
317,725
$
14.26
8.44 years
$
8,616
Exercisable and fully vested at December 31, 2010
17,725
$
2.28
0.95 years
$
693
Outstanding at January 1, 2011
317,725
$
14.26
Exercised
(17,725
)
$
2.28
Outstanding at December 31, 2011
300,000
$
14.97
7.89 years
$
2,883
Exercisable and fully vested at December 31, 2011
75,000
$
14.97
7.89 years
$
721
Outstanding at January 1, 2012
300,000
$
14.97
Options granted
100,000
$
28.98
Outstanding at December 31, 2012
400,000
$
18.47
7.43 years
$
1,206
Exercisable and fully vested at December 31, 2012
150,000
$
14.97
6.89 years
$
603
Exercise Price
Shares
Outstanding
Options
Outstanding
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
Shares
Outstanding
and
Exercisable
Options Exercisable
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
$
14.97
300,000
6.89 years
$
14.97
150,000
6.89 years
$
14.97
$
28.98
100,000
9.07 years
$
28.98
—
9.07 years
$
28.98