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Stock-Based Compensation
6 Months Ended
Jun. 30, 2011
Stock-Based Compensation [Abstract] 
Stock-Based Compensation
3. Stock-Based Compensation

The Company has included the following amounts for stock-based compensation expense, including the cost related to restricted stock units ("RSUs"), market stock units, and stock options granted under the Company's equity award plans including the Company's employee stock purchase plan, in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2011 and 2010 (amounts in thousands):

 

     Three months ended
June 30,
     Six months ended
June 30,
 
     2011     2010      2011     2010  

Cost of sales

   $ 53      $ 145       $ 197      $ 253   

Engineering and technology

     178        651         433        862   

Sales and marketing

     223        1,059         652        1,538   

General and administrative

     884        1,935         2,089        3,417   

Discontinued operations

     (536     169         (159     169   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 802      $ 3,959       $ 3,212      $ 6,239   
  

 

 

   

 

 

    

 

 

   

 

 

 

The total intrinsic value and net shares issued for RSUs vested, options exercised, and shares purchased pursuant to the employee stock purchase plan ("ESPP") during the three and six months ended June 30, 2011 and 2010 is presented below (amounts in thousands):

 

     Three months ended June 30,      Six months ended June 30,  
     2011      2010      2011      2010  
     Intrinsic
value
    

Net shares

issued

     Intrinsic
value
    

Net shares

issued

     Intrinsic
value
    

Net shares

issued

     Intrinsic
value
    

Net shares

issued

 

RSUs vested

   $ 2,858         229       $ 3,350         221       $ 3,740         296       $ 5,470         337   

Options exercised

     1,057         1,233         158         52         1,486         1,549         356         187   

Shares purchased pursuant to ESPP

     —           —           75         —           41         30         75         26   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 3,915         1,462       $ 3,583         273       $ 5,267         1,875       $ 5,901         550   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

To determine the stock-based compensation expense that was recognized with respect to RSUs, market stock units (which are a form of share price performance-based restricted stock unit granted under our 2011 long-term executive compensation plan), and stock options in the three and six months ended June 30, 2011 and 2010, the Company used the fair value at date of grant for RSUs, the Black-Scholes-Merton option-pricing model for stock option grants, and the Monte Carlo valuation method for the market stock unit grants, with the following weighted-average inputs for stock option grants and market stock unit grants:

 

     Three months ended
June 30,
  Six months ended
June 30,
     2011   2010   2011   2010

Stock option grants:

        

Risk-free interest rate

   1.06%   1.38%   1.06%   1.40%

Expected dividend yield

   0%   0%   0%   0%

Expected volatility

   46%   51%   47%   51%

Expected life

   3.0 years   3.0 years   3.0 years   3.0 years

Market stock unit grants:

        

Risk-free interest rate

   0.15%   —     0.15%   —  

InfoSpace expected dividend yield

   0%   —     0%   —  

iShares Russell 2000 Index expected dividend yield

   1.08%   —     1.08%   —  

InfoSpace closing stock price

   $8.74   —     $8.74   —  

iShares Russell 2000 Index closing price

   $82.29   —     $82.29   —  

InfoSpace expected volatility

   37.4%   —     37.4%   —  

iShares Russell 2000 Index expected volatility

   20.3%   —     20.3%   —  

Measurement period

   1.0 years   —     1.0 years   —