Cincinnati Bell 2015 Annual Report Download - page 218

Form 10-K Part II Cincinnati Bell Inc.
The following table summarizes our time-based restricted award activity:
2015 2014 2013
(in thousands, except per share amounts) Shares
Weighted-
Average
Exercise
Price Per
Share Shares
Weighted-
Average
Exercise
Price Per
Share Shares
Weighted-
Average
Exercise
Price Per
Share
Non-vested at January 1, ...................... 684 $3.70 1,044 $3.55 1,298 $3.11
Granted ................................... 180 3.47 176 3.19 279 4.72
Vested .................................... (630) 3.54 (514) 3.25 (454) 3.03
Forfeited .................................. — — (22) 3.19 (79) 3.40
Non-vested at December 31, ................... 234 $3.96 684 $3.70 1,044 $3.55
(dollars in millions)
Compensation expense for the year ............. $ 1.0 $ 1.6 $ 1.7
Tax benefit related to compensation expense ...... $(0.3) $ (0.6) $ (0.6)
Grant date fair value of awards vested ........... $ 2.2 $ 1.7 $ 1.4
As of December 31, 2015, there was $0.2 million of unrecognized compensation expense related to these
restricted stock awards, which is expected to be recognized during 2016.
Cash-Settled and Other Awards
The Company grants cash-settled stock appreciation rights and performance awards. The final payments of
these awards will be indexed to the percentage change in the Company’s stock price from the date of grant.
The Company granted cash-payment performance awards of $3.6 million in 2014. No cash-payment awards
were issued in 2015 or 2013. For the years ended December 31, 2015 and 2014, expense of $0.6 million related
to cash-payment awards was incurred. For the year ended December 31, 2013, a benefit of $0.2 million related to
these awards was incurred.
At December 31, 2015 there was $1.9 million remaining unrecognized compensation expense for cash-
settled and other awards, which will primarily be recognized during 2016. The aggregate intrinsic value of
outstanding and exercisable cash-settled stock appreciation rights at December 31, 2015 was $0.8 million.
Deferred Compensation Plans
The Company currently has deferred compensation plans for both the Board of Directors and certain
executives of the Company. Under the directors deferred compensation plan, each director can defer receipt of all
or a part of their director fees and annual retainers, which can be invested in various investment funds including
the Company’s common stock. In years prior to 2012, the Company granted 6,000 phantom shares to each non-
employee director on the first business day of each year, which are fully vested once a director has five years of
service. No phantom shares were granted to non-employee directors in 2015. Distributions to the directors are
generally in the form of cash. The executive deferred compensation plan allows for certain executives to defer a
portion of their annual base pay, bonus, or stock awards. Under the executive deferred compensation plan,
participants can elect to receive distributions in the form of either cash or common shares. In the fourth quarter of
2015 the executive deferred compensation plan was terminated. All amounts due under the plan will be
distributed to plan participants during 2016.
At December 31, 2015 and 2014, there were 0.3 million and 0.4 million common shares deferred in these
plans, respectively. As these awards can be settled in cash, compensation costs each period are based on the
change in the Company’s stock price. We recognized compensation expense of $0.2 million in 2015, a benefit of
$0.3 million in 2014, and a benefit of $1.4 million in 2013.
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