Avid 2015 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2015 Avid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 113

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113

83
Information with respect to non-vested restricted stock units for the year ended December 31, 2015 was as follows:
Non-Vested Restricted Stock Units
Total Shares
Weighted-
Average
Grant-Date
Fair Value
Weighted-
Average
Remaining
Contractual
Term (years)
Aggregate
Intrinsic
Value
(in thousands)
Non-vested at January 1, 2015 811,880 $10.01
Granted 1,264,116 $10.31
Vested (421,314) $10.04
Forfeited (388,674) $10.90
Non-vested at December 31, 2015 1,266,008 $9.97 0.99 $9,216
Expected to vest 820,741 $11.14 0.94 $5,975
The weighted-average grant date fair value of restricted stock units granted during the years ended December 31, 2015, 2014 and 2013
was $10.31, $10.19 and $7.84, respectively. The total fair value of restricted stock units vested during the years ended December 31,
2015, 2014, and 2013 was $4.2 million, $2.5 million, and $1.1 million, respectively.
Employee Stock Purchase Plan
The Company’s Second Amended and Restated 1996 Employee Stock Purchase Plan (the “ESPP”) offers the Company’s shares for
purchase at a price equal to 85% of the closing price on the applicable offering period termination date. Shares issued under the ESPP
are considered compensatory. Accordingly, the Company is required to measure fair value and record compensation expense for share
purchase rights granted under the ESPP. The Company last issued shares under the ESPP on October 31, 2015. In July 2015 the Board
of Directors approved an amendment to the plan to change the subscription period from three to six months and accordingly to adjust
the payroll cap to $5,000 per plan period. A total of 343,613 shares remained available for issuance under the ESPP at December 31,
2015.
The Company uses the Black-Scholes option pricing model to calculate the fair value of shares issued under the ESPP. The Black-
Scholes model relies on a number of key assumptions to calculate estimated fair values. The following table sets forth the weighted-
average key assumptions and fair value results for shares issued under the ESPP during the years ended December 31, 2015, 2014 and
2013:
Year Ended December 31,
2015 2014 2013
Expected dividend yield 0.00% 0.00% 0.00%
Risk-free interest rate 0.03% 0.09% 0.09%
Expected volatility 37.0% 35.0% 51.0%
Expected life (in years) 0.24 0.17 0.25
Weighted-average fair value of shares issued (per share) $2.15 $2.02 $1.00
The following table sets forth the quantities and average prices of shares issued under the ESPP for the years ended December 31,
2015, 2014 and 2013:
Year Ended December 31,
2015 2014 2013
Shares issued under the ESPP 98,300 — 27,936
Average price of shares issued $10.17 $— $6.29
The Company did not realize a material tax benefit from the tax deductions for stock option exercises, vested restricted stock units and
shares issued under the ESPP during the years ended December 31, 2015, 2014 or 2013.