Comfort Inn 2013 Annual Report Download - page 100

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Table of Contents
Share-Based Compensation
The Company recognizes compensation cost related to share-based payment transactions in the financial statements based on the fair value of the equity
or liability instruments issued. Compensation expense related to the fair value of share-based awards is recognized over the requisite service period based on an
estimate of those awards that will ultimately vest. The Company estimates the share-based compensation expense for awards that will ultimately vest at the
inception of the grant. Over the life of the grant, the estimate of share-based compensation expense for awards with performance and/or service requirements is
adjusted so that compensation cost is recognized only for awards that ultimately vest.
The Company has calculated a pool of income tax benefits that are available to absorb future income tax shortfalls that can result from the exercise or
maturity of stock awards. The Company has calculated its windfall pool under the short-cut method based on the actual income tax benefits received from
exercises and maturities of stock awards granted after October 15, 1997.
The Company has stock compensation plans pursuant to which it is authorized to grant stock-based awards of up to 7.6 million shares of the
Company’s common stock, of which 3.5 million shares remain available for grant as of December 31, 2013. The Company’s policy allows the issuance of
new or treasury shares to satisfy stock-based awards. Restricted stock, stock options, stock appreciation rights and performance share awards may be
granted to officers, key employees and non-employee directors with contractual terms set by the Compensation and Management Development Committee of
the Board of Directors.
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