eTrade 2010 Annual Report Download - page 160
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A summary of options activity under the stock option plan is presented below:
Shares
(in thousands)
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Life
Aggregate
Intrinsic Value
(in thousands)
Outstanding at December 31, 2009 2,952 $ 91.44 3.83 $3,932
Granted 511 $ 14.80
Exercised (20) $ 9.25
Canceled/forfeited (454) $112.92
Outstanding at December 31, 2010 2,989 $ 75.62 3.57 $3,483
Vested and expected to vest at December 31, 2010 2,920 $ 77.04 3.51 $3,378
Exercisable at December 31, 2010 2,186 $ 94.17 2.81 $1,270
As of December 31, 2010, there was $4.8 million of total unrecognized compensation cost related to
non-vested stock options. This cost is expected to be recognized over a weighted-average period of 1.4 years.
Restricted Stock Awards and Restricted Stock Units
The Company issues restricted stock awards and restricted stock units to its employees. Each restricted
stock unit can be converted into one share of the Company’s common stock upon vesting. These awards are
issued at the fair value on the date of grant and vest ratably over the period, generally two to four years. The fair
value is calculated as the market price upon issuance.
The Company recorded $17.0 million, $26.7 million and $15.5 million for the years ended December 31,
2010, 2009 and 2008, respectively, in compensation expense related to restricted stock awards and restricted
stock units. The Company recognized a tax benefit of $5.9 million, $9.6 million and $3.9 million related to
restricted stock awards and restricted stock units for the years ended December 31, 2010, 2009 and 2008,
respectively.
A summary of non-vested restricted stock award activity is presented below:
Shares
(in thousands)
Weighted-
Average Grant
Date Fair Value
Non-vested at December 31, 2009 238 $25.41
Issued 49 $16.77
Released (vested) (142) $27.22
Canceled/forfeited — $ —
Non-vested at December 31, 2010 145 $20.75
A summary of non-vested restricted stock unit activity is presented below:
Units
(in thousands)
Weighted-
Average
Remaining
Contractual
Life
Aggregate
Intrinsic Value
(in thousands)
Outstanding at December 31, 2009 1,872 0.73 $33,037
Issued 773
Released (1,183)
Canceled/forfeited (69)
Outstanding at December 31, 2010 1,393 0.85 $22,181
Vested and expected to vest at December 31, 2010 1,299 0.83 $20,681
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