Community Health Systems 2015 Annual Report Download - page 122

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
of these granted options occurs in one-third increments on each of the first three anniversaries of the award date.
Options granted in 2011 or later have a 10-year contractual term. As of December 31, 2015, 3,175,324 shares of
unissued common stock were reserved for future grants under the 2009 Plan.
The exercise price of all options granted under the 2000 Plan and the 2009 Plan has been equal to the fair value
of the Company’s common stock on the option grant date.
The following table reflects the impact of total compensation expense related to stock-based equity plans on
the reported operating results for the respective periods (in millions):
Year Ended December 31,
2015 2014 2013
Effect on income from continuing operations before income
taxes ........................................... $ (59) $ (54) $ (38)
Effect on net income ................................ $ (35) $ (34) $ (24)
At December 31, 2015, $59 million of unrecognized stock-based compensation expense related to outstanding
unvested restricted stock and restricted stock units (the terms of which are summarized below) was expected to
be recognized over a weighted-average period of 21 months. There is no expense to be recognized related to
stock options. There were no modifications to awards during the years ended December 31, 2015 and 2014.
Options outstanding and exercisable under the 2000 Plan and the 2009 Plan as of December 31, 2015, and
changes during each of the years in the three-year period prior to December 31, 2015, were as follows (in
millions, except share and per share data):
Shares
Weighted-
Average
Exercise Price
Weighted-
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value as of
December 31,
2015
Outstanding at December 31, 2012 ........ 7,104,113 $ 34.25
Granted ........................... - -
Exercised .......................... (3,299,859) 33.53
Forfeited and cancelled ............... (66,709) 34.01
Outstanding at December 31, 2013 ........ 3,737,545 34.88
Granted ........................... - -
Exercised .......................... (1,768,473) 37.06
Forfeited and cancelled ............... (15,345) 29.92
Outstanding at December 31, 2014 ........ 1,953,727 32.94
Granted ........................... - -
Exercised .......................... (711,568) 35.15
Forfeited and cancelled ............... (10,001) 34.96
Outstanding at December 31, 2015 ........ 1,232,158 $ 31.65 4.1 years $ 2
Exercisable at December 31, 2015 ........ 1,232,158 $ 31.65 4.1 years $ 2
No stock options were granted during the years ended December 31, 2015, 2014 and 2013. The aggregate
intrinsic value (the number of in-the-money stock options multiplied by the difference between the Company’s
closing stock price on the last trading day of the reporting period ($26.53) and the exercise price of the respective
stock options) in the table above represents the amount that would have been received by the option holders had
109