• Filing Date: 2015-03-10
  • Form Type: 10-K
  • Description: Annual report
v2.4.1.9
Stock-Based Compensation
12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation

Note 15 — Stock-Based Compensation

Incentive Plan

The Company currently has outstanding stock-based awards granted under the 2007 Stock Option and Incentive Plan and the 2012 Omnibus Incentive Plan. Only the 2012 Plan is available for future grants as the 2007 Plan was terminated in 2012. With respect to the 2012 Plan, the Company may grant stock-based awards to employees, directors, consultants, and advisors of the Company. At December 31, 2014, there were 4,246,470 shares available for grant under the 2012 Plan.

Stock Options

Stock options granted and outstanding under the incentive plan vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years.

A summary of the stock option activity for the years ended December 31, 2014, 2013 and 2012 is as follows (option amounts not in thousands):

 

     Number of
Options
     Weighted
Average
Exercise
Price
     Weighted
Average
Remaining
Contractual
Term
   Aggregate
Intrinsic
Value
 

Outstanding at January 1, 2012

     620,000       $ 2.97       5.7 years    $ 3,122   

Exercised

     (340,000    $ 3.03         
  

 

 

          

Outstanding at December 31, 2012

  280,000    $ 2.91    4.9 years $ 5,007   
  

 

 

          

Outstanding at December 31, 2013

  280,000    $ 2.91    3.9 years $ 14,166   
  

 

 

          

Exercised

  (50,000 $ 2.50   
  

 

 

          

Outstanding at December 31, 2014

  230,000    $ 3.00    3.0 years $ 9,256   
  

 

 

          

Exercisable at December 31, 2014

  230,000    $ 3.00    3.0 years $ 9,256   
  

 

 

          

The following table summarizes information about options exercised, and the fair value of vested options for the years ended December 31, 2014, 2013 and 2012 (option amounts not in thousands):

 

     2014      2013      2012  

Options exercised

     50,000         —           340,000   

Total intrinsic value of exercised options

   $ 1,970       $ —         $ 3,648   

Fair value of vested stock options

   $ 17       $ 17       $ 22   

Tax benefits realized

   $ 603       $ —         $ 1,161   

 

During the year ended December 31, 2012, a total of 340,000 options were exercised of which 227,003 options were net settled by surrender of 72,592 shares. Compensation expense recognized for the years ended December 31, 2014, 2013 and 2012 totaled approximately $6, $19 and $68, respectively, and is included in other operating expenses. At December 31, 2014 and 2013, there was approximately $0 and $6, respectively, of unrecognized compensation expense related to nonvested stock options granted under the plan. Deferred tax benefits related to stock options for the years ended December 31, 2014, 2013 and 2012 were immaterial.

Restricted Stock Awards

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance and market-based conditions. The fair value of the awards with market-based conditions is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. The determination of fair value with respect to the awards with only performance or service-based conditions is based on the value of the Company’s stock on the grant date.

Information with respect to the activity of unvested restricted stock awards during the years ended December 31, 2014, 2013 and 2012 is as follows (share amounts not in thousands):

 

     Number of
Restricted
Stock
Awards
     Weighted
Average
Grant Date
Fair Value
 

Nonvested at January 1, 2012

     —           —     

Granted

     246,320       $ 14.54   
  

 

 

    

Nonvested at December 31, 2012

  246,320    $ 14.54   
  

 

 

    

Granted

  612,000    $ 27.36   

Vested

  (93,000 $ 12.18   

Forfeited

  (29,670 $ 15.03   
  

 

 

    

Nonvested at December 31, 2013

  735,650    $ 25.48   
  

 

 

    

Granted

  108,720    $ 47.40   

Vested

  (193,825 $ 27.48   

Forfeited

  (10,840 $ 41.53   
  

 

 

    

Nonvested at December 31, 2014

  639,705    $ 28.33   
  

 

 

    

 

The Company recognized compensation expense, which is included in other operating expenses, of $8,104, $5,346 and $776, respectively, for the years ended December 31, 2014, 2013 and 2012. At December 31, 2014 and 2013, there was approximately $10,355 and $13,757, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 23 months. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards as well as their paid dividends, and the fair value of vested restricted stock for the years ended December 31, 2014, 2013 and 2012.

 

     2014      2013      2012  

Deferred tax benefits recognized

   $ 3,126       $ 2,062       $ 299   

Tax benefits realized for restricted stock and paid dividends

   $ 1,477       $ 1,060       $ —     

Fair value of vested restricted stock

   $ 5,326       $ 1,133       $ —     

The following presents assumptions used in a Monte Carlo simulation model to determine the fair value of the awards with market-based conditions:

 

     2014    2013    2012

Expected dividends per share

   $1.10    $0.90    $0.80

Expected volatility

   42.1 – 46.6%    41.5 – 51.6%    36.7 – 50.0%

Risk-free interest rate

   0.1 – 1.5%    0.0 – 1.9%    0.1 – 1.2%

Estimated cost of capital

   11.5%    9.3 – 10.3%    11.9 – 12.1%

Expected life (in years)

   4.00    4.00 – 6.00    6.00