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F-29 VONAGE ANNUAL REPORT 2012
Information regarding the options outstanding as of December 31, 2012 is summarized below:
Stock Options Outstanding Stock Options Exercisable
Range of
Exercise Prices
Stock
Options
Outstanding
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
Stock
Options
Vested and
Exercisable
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
(in thousands) (in years) (in thousands) (in thousands) (in years) (in thousands)
$0.33 to $1.43 20,332 1.31 15,014 1.32
$1.44 to $1.99 4,747 1.84 4,474 1.85
$2.00 to $4.00 9,594 2.30 1,214 2.46
$4.01 to $7.34 4,145 4.72 1,354 4.90
$7.35 to $35.00 1,422 11.50 1,422 11.50
40,240 6.3 2.32 $ 25,294 23,478 4.9 2.30 $ 18,231
The aggregate intrinsic value of restricted stock units
outstanding was $7,923 as of December 31, 2012.
Retirement Plan
In March 2001, we established a 401(k) Retirement Plan (the
“Retirement Plan”) available to employees who meet the plan’s eligibility
requirements. Participants may elect to contribute a percentage of their
compensation to the Retirement Plan up to a statutory limit. We may
make a contribution to the Retirement Plan in the form of a matching
contribution. The employer matching contribution is 50% of each
employee’s contributions not to exceed $6 in 2010, 2011, and 2012. Our
expense related to the Retirement Plan was $2,160, $2,114, and $1,615
in 2012, 2011, and 2010, respectively.
Note 10. Commitments and Contingencies
Capital Leases
Assets financed under capital lease agreements are included
in property and equipment in the consolidated balance sheet and related
depreciation and amortization expense is included in the consolidated
statements of operations.
On March 24, 2005, we entered into a lease for our
headquarters in Holmdel, New Jersey. We took possession of a portion
of the office space at the inception of the lease, another portion on
August 1, 2005 and took over the remainder of the office space in early
2006. The overall lease term is twelve years and five months. In
connection with the lease, we issued a letter of credit which requires
$7,350 of cash as collateral, which is classified as restricted cash. Part
of the cash was released, leaving a balance of $5,300 at December 31,
2012.The gross amount of the building recorded under capital
leases totaled $25,709 as of December 31, 2012 and accumulated
depreciation was approximately $15,449 as of December 31, 2012.
Operating Leases
We have entered into various non-cancelable operating lease
agreements for certain of our existing office and telecommunications
co-location space in the United States and for international subsidiaries
with original lease periods expiring between 2013 and 2015. We are
committed to pay a portion of the buildings’ operating expenses as
determined under the agreements.
VONAGE HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)