eTrade 2011 Annual Report Download - page 156

As of December 31, 2011, there was $4.0 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 2.4 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 $11.7 million, $17.0 million and $26.7 million for the years ended December 31,
2011, 2010 and 2009, respectively, in compensation expense related to restricted stock awards and restricted
stock units. The Company recognized a tax benefit of $3.4 million, $5.9 million and $9.6 million related to
restricted stock awards and restricted stock units for the years ended December 31, 2011, 2010 and 2009,
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, 2010 145 $20.75
Issued 25 $16.20
Released (vested) (107) $22.58
Canceled/forfeited — $ —
Non-vested at December 31, 2011 63 $15.89
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, 2010 1,393 0.85 $22,181
Issued 1,594
Released (939)
Canceled/forfeited (80)
Outstanding at December 31, 2011 1,968 1.50 $15,677
Expected to vest at December 31, 2011 1,744 1.47 $13,894
As of December 31, 2011, there was $19.6 million of total unrecognized compensation cost related to
non-vested awards. This cost is expected to be recognized over a weighted-average period of 2.6 years. The total
fair value of restricted shares and restricted stock units vested was $15.4 million, $20.9 million and $8.1 million
for the years ended December 31, 2011, 2010 and 2009, respectively.
401(k) Plan
The Company has a 401(k) salary deferral program for eligible employees who have met certain service
requirements. The Company matches certain employee contributions; additional contributions to this plan are at
the discretion of the Company. Total contribution expense under this plan was $4.5 million, $4.1 million and
$4.1 million for the years ended December 31, 2011, 2010 and 2009, respectively.
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