Table of Contents 

INFOSPACE, INC. 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 

Years Ended December 31, 2001, 2000 and 1999 

Information regarding stock option grants for all plans during the years ended December 31, 2001, 2000 and 1999 is summarized as 

follows:  

Year Ended December 31, 2001 

Year Ended December 31, 2000 

Year Ended December 31, 1999 

Weighted 

Weighted 

Weighted 

Weighted 

Weighted 

Weighted 

Average 

Average 

Average 

Average 

Average 

Average 

Exercise 

Fair 

Exercise 

Fair 

Exercise 

Fair 

Shares 

Price 

Value 

Shares 

Price 

Value 

Shares 

Price 

Value 

Exercise price exceeds 

market price 

97,618    

$ 

28.97    

$ 

4.51   

66,248    

$ 

24.15    

$ 

6.92 

Exercise price equals 

market price 

44,573,370    

$ 

3.52    

$ 

3.08   

46,910,416    

$ 

36.31    

$ 

29.65   

17,994,531    

$ 

24.46    

$ 

22.60 

Exercise price is less 

than market price 

5,984,146    

$ 

2.47    

$ 

4.57   

865,518    

$ 

7.37    

$ 

30.97   

1,075,662    

$ 

4.53    

$ 

17.62 

Shares granted with an exercise price that exceeds the market price are generally the result of an acquisition. When a company is acquired, 

the Company assumes the stock options of employees that are retained from the acquired company. These acquired stock options are 

considered to be new grants by the Company and retain the original exercise price adjusted for the acquisition conversion ratio.  

The Company has elected to follow the measurement provisions of APB Opinion No. 25, under which no recognition of expense is 

required in accounting for stock options granted to employees for which the exercise price equals or exceeds the fair market value of the stock 

at the grant date. In those cases where options have been granted when the option price is below fair market value or where restricted stock has 

been issued, the Company recognizes compensation expense over the vesting period using the aggregated percentage of compensation accrued 

method as prescribed by FIN No. 28.  

To estimate compensation expense which would be recognized under SFAS No. 123, 

Accounting for Stock based Compensation 

, the 

Company uses the modified Black Scholes option pricing model with the following weighted average assumptions for options granted: risk 

free interest rate of 6.56% for the 1999 grants, 5.71% for the 2000 and 3.07% to 4.38% for the 2001 grants, expected dividend yield of 0 % for 

all periods; volatility of 121% to 313% for the 1999 grants, 134% to 289% for the 2000 grants and 136% for the 2001 grants; and an expected 

life of three to five years.  

Had compensation expense for the Plans been determined based on the fair value of the options at the grant dates for awards under the 

Plans consistent with SFAS No. 123, the Company's net losses for the years ended December 31, 2001, 2000 and 1999 would have been as 

follows (amounts in thousands, except per share data):  

2001 

2000 

1999 

Net loss applicable to common stockholders as reported 

$  (502,079 ) 

$  (282,412 ) 

$  (240,133 ) 

Net loss applicable to common stockholders, pro forma 

$  (581,659 ) 

$  (817,113 ) 

$  (359,431 ) 

Basic and diluted net loss per share, pro forma 

$ 

(1.83 ) 

$ 

(2.68 ) 

$ 

(1.39 ) 

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