Travelzoo 2014 Annual Report Download - page 108

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73
Option activities during the years ended December 31, 2012, 2013, and 2014 were as follows:
Shares Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual Life
Aggregate
Intrinsic
Value
(In thousands)
Outstanding at January 1, 2012 300,000 $ 14.97 7.89 years $ 2,883
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
Outstanding at January 1, 2013 400,000 $ 18.47
Options granted 75,000 $ 29.58
Outstanding at December 31, 2013 475,000 $ 20.23 6.93 years $ 1,905
Exercisable and fully vested at
December 31, 2013 250,000 $ 16.37 6.10 years $ 1,429
Outstanding at January 1, 2014 475,000 $ 20.23
Options forfeited (25,000) $ 28.98
Options canceled (25,000) 28.98
Outstanding at December 31, 2014 425,000 $ 19.20 5.79 years $ —
Exercisable and fully vested at
December 31, 2014 325,000 $ 16.05 5.05 years $ —
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 years ended December 31, 2014, 2013 and 2012 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, 2014, 2013, and 2012. 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.
Outstanding options at December 31, 2014 were as follows:
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 5.89 years $ 14.97 300,000 5.89 years $ 14.97
$ 28.98 50,000 8.07 years $ 28.98 25,000 8.07 years $ 28.98
$ 29.58 75,000 9.56 years $ 29.58 — — $ 29.58
Note 10: Stock Repurchase Program
The Company's stock repurchase programs assist 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.
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. During the year ended December 31, 2012, the Company repurchased 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 repurchased 439,000 shares of common
stock for an aggregate purchase price of $7.9 million. The 439,000 shares repurchased were recorded as part of treasury stock
as of December 31, 2012. There were 400,000 shares remaining to be repurchased under this program as of December 31,
2012.