America Online 2009 Annual Report Download - page 96

Table of Contents
The grant date fair value of all Time Warner equity-based awards has been adjusted to reflect the effect of Time Warner's 1-for-3 reverse stock split
which became effective on March 27, 2009. The weighted-average fair value of a Time Warner stock option granted to AOL employees was $4.57, $12.09
and $15.21 for the years ended December 31, 2009, 2008 and 2007, respectively. The total intrinsic value of Time Warner options exercised by AOL
employees was $3.3 million, $38.6 million and $141.8 million for the years ended December 31, 2009, 2008 and 2007, respectively. Time Warner received
cash from the exercise of Time Warner stock options by AOL employees totaling $13.0 million, $90.9 million and $188.9 million for the years ended
December 31, 2009, 2008 and 2007, respectively. The tax benefits realized by AOL from Time Warner stock options exercised in the years ended
December 31, 2009, 2008 and 2007 were approximately $1.2 million, $15.4 million and $55.9 million, respectively.
Time Warner Restricted Stock and Restricted Stock Units
The fair value of Time Warner restricted stock and RSUs granted to AOL employees that vested during the years ended December 31, 2009, 2008 and
2007 was $12.1 million, $5.4 million and $5.9 million, respectively.
For the year ended December 31, 2009, 0.5 million Time Warner RSUs were granted to AOL employees at a weighted-average grant date fair value per
RSU of $18.14. For the year ended December 31, 2008, 0.8 million Time Warner RSUs were granted to AOL employees at a weighted-average grant date fair
value per RSU of $44.13. For the year ended December 31, 2007, 0.6 million Time Warner RSUs were granted to AOL employees at a weighted-average
grant date fair value per RSU of $59.88. Time Warner RSUs held by most employees at the date of spin-off were either vested or forfeited as a result of the
spin-off. Following the spin-off, there are no outstanding unvested Time Warner RSUs held by AOL employees.
NOTE 9—RESTRUCTURING COSTS
2009 Restructuring Costs
For the year ended December 31, 2009, the Company undertook various restructuring activities in an effort to better align its organizational structure
and costs with its strategy. As a result, the Company incurred $190.3 million in restructuring costs, which included $185.0 million in restructuring costs
related to employee terminations, facility closures and other exit activities in 2009, and $5.3 million in restructuring costs associated with actions taken in
2008 and prior years (which includes adjustments to previous estimates). Employee termination costs were attributable to terminations of employees ranging
from senior executives to line personnel.
2008 Restructuring Costs
For the year ended December 31, 2008, the Company incurred $16.6 million in restructuring costs, which included $7.2 million in restructuring costs
related to employee terminations, facility closures and other exit activities in 2008, and $9.4 million in restructuring costs associated with actions taken in
2007 and prior years (which includes adjustments to previous estimates). Employee termination costs were attributable to terminations of employees ranging
from senior executives to line personnel.
2007 Restructuring Costs
For the year ended December 31, 2007, the Company incurred $125.4 million in restructuring costs, which included $93.7 million in restructuring costs
related primarily to employee terminations, asset write-offs, facility closures and other exit activities in 2007, and $31.7 million in restructuring costs
associated with actions taken in 2006 and prior years (which includes adjustments to previous estimates). Employee termination costs were attributable to
terminations of employees ranging from senior executives to line personnel.
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