America Online 2009 Annual Report Download - page 95
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Table of Contents
The following table summarizes information about AOL stock options that were outstanding at December 31, 2009:
Options
Number of
Options
(in millions)
Weighted-
Average
Exercise Price
Weighted-
Average
Remaining
Contractual Life
(in years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding at December 31, 2008 —
Converted (a) 0.5 $ 11.90 9.3 years
Granted 3.2 $ 23.28 10.0 years
Outstanding at December 31, 2009 3.7 $ 21.85 9.9 years $ 1,549
Exercisable at December 31, 2009 —
(a) Represents the Time Warner stock options held by AOL's Chairman and Chief Executive Officer that were converted into AOL stock options.
As of December 31, 2009, 4.4 million shares of AOL common stock were available for future grants of stock options. Total unrecognized compensation
cost related to unvested AOL stock option awards as of December 31, 2009, without taking into account expected forfeitures, is $33.4 million and is expected
to be recognized over a weighted-average period of 3.27 years.
The weighted-average grant date fair value of an AOL stock option granted during the year ended December 31, 2009 was $9.94. No stock options
were exercised during the year ended December 31, 2009.
AOL Restricted Stock Units
The following table summarizes information about unvested AOL RSUs at December 31, 2009:
Number of
Shares/Units
(millions)
Weighted-
Average Grant
Date Fair Value
Unvested at December 31, 2008 — $ —
Converted (a) 0.3 23.39
Granted 2.9 23.28
Unvested at December 31, 2009 3.2 23.29
(a) Represents the Time Warner RSUs held by AOL's Chairman and Chief Executive Officer that were converted into AOL RSUs. The weighted-average
grant date fair value amount above for these converted awards represents the fair value on the conversion date.
At December 31, 2009, the intrinsic value of unvested AOL RSUs was $68.6 million. Total unrecognized compensation cost related to unvested AOL
RSUs at December 31, 2009, without taking into account expected forfeitures, was $67.9 million and is expected to be recognized over a weighted-average
period of 3.78 years.
Time Warner Stock Options
The assumptions presented in the table below represent the weighted-average value of the applicable assumption used to value Time Warner stock
options at their grant date.
Years Ended December 31,
2009 2008 2007
Expected volatility 38.1% 28.5% 22.1%
Expected term to exercise from grant date 4.71 years 5.73 years 5.16 years
Risk-free rate 1.9% 3.1% 4.4%
Expected dividend yield 3.8% 1.7% 1.1%
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