Envestnet, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation (Tables)

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Employee stock-based compensation expense

Employee stock-based compensation expense was as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011

Employee stock-based compensation expense	$	1,135		$	829		$	1,930		$	1,645
Tax effect on employee stock-based compensation expense		(456	)		(330	)		(777	)		(661	)

Net effect on income	$	679		$	499		$	1,153		$	984

Weighted average assumptions used to value options granted

The following weighted average assumptions were used to value options granted during the periods indicated:


	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011

Grant date fair value of options	$	4.97		$	—	$	4.91		$	5.26
Volatility		39.7	%		—		39.7	%		39.3	%
Risk-free interest rate		1.2	%		—		1.2	%		2.5	%
Dividend yield		0.0	%		—		0.0	%		0.0	%
Expected term (in years)		6.0			—		6.0			6.0

Summary of option activity

The following table summarizes option activity under the 2004 Plan, 2010 Plan and 2012 Plan:


	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value

Outstanding as of December 31, 2011		4,863,718		$	8.19
Granted		149,652			12.45
Exercised		(124,956	)		7.59
Forfeited		(2,000	)		9.70

Outstanding as of March 31, 2012		4,886,414			8.34		6.7	$	20,544
Granted		589,263			12.55
Exercised		(99,837	)		6.18
Forfeited		(1,800	)		9.00

Outstanding as of June 30, 2012		5,374,040			8.84		6.8		17,737


Options exercisable		2,977,757			7.43		5.4		13,769

Restricted Stock [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of unvested stock awards activity

The following is a summary of the activity for unvested restricted stock awards granted under all Plans:


	Number of Shares			Weighted- Average Grant Date Fair Value per Share

Balance at December 31, 2011		73,820		$	12.26
Granted		155,383			12.44
Vested		(21,235	)		12.55
Expired/cancelled		(1,064	)		12.45
Forfeited		(104	)		12.55

Balance at March 31, 2012		206,800			12.36
Granted		559,551			12.51
Forfeited		(381	)		12.49

Balance at June 30, 2012		765,970		$	12.47

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

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