Harley Davidson 2013 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2013 Harley Davidson 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 117

  • 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
  • 114
  • 115
  • 116
  • 117

96
The assumptions used to determine the fair value of the SAR awards at December 31, 2013 and 2012 were as follows:
2013 2012
Expected average term (in years) 3.5 - 4.3 1.3 - 5.6
Expected volatility 24% - 32% 31% - 45%
Expected dividend yield 1.2% 1.3%
Risk-free interest rate 0.1% - 3.0% .1% - 1.8%
The following table summarizes the SAR transactions for the year ended December 31, 2013 (in thousands except for per
share amounts):
SARs
Weighted-
Average
Price
Outstanding, beginning of period 253 $ 21
Granted 20 $ 52
Exercised (60) $ 22
Forfeited (3) $ 22
Outstanding, end of period 210 $ 26
Exercisable, end of period 171 $ 21
The weighted-average fair value of SARs granted during the years ended December 31, 2013, 2012 and 2011 was $12,
$14 and $15, respectively.
Restricted (Nonvested) Stock:
The fair value of restricted stock is determined based on the market price of the Company’s shares on the grant date. The
following table summarizes the restricted stock transactions for the year ended December 31, 2013 (in thousands except for per
share amounts):
Restricted
Shares
Grant Date
Fair Value
Per Share
Nonvested, beginning of period 1,692 $ 29
Granted 490 $ 52
Vested (1,161) $ 24
Forfeited (39) $ 48
Nonvested, end of period 982 $ 47
As of December 31, 2013, there was $20.0 million of unrecognized compensation cost related to restricted stock that is
expected to be recognized over a weighted-average period of 1.7 years.
Restricted Stock Units (RSUs)
Restricted stock units vest under the same terms and conditions as restricted stock; however, they are settled in cash equal
to their settlement date fair value. As a result, RSUs are recorded in the Company’s consolidated balance sheets as a liability
until the date of vesting.
The fair value of RSUs is determined based on the market price of the Company’s shares on the grant date. The following
table summarizes the RSU transactions for the year ended December 31, 2013 (in thousands except for per share amounts):
Restricted
Stock Unit
Weighted-Average
Grant Date
Fair Value
Per Share
Nonvested, beginning of period 242 $ 47
Granted 83 $ 69
Vested (161) $ 54
Forfeited (17) $ 65
Nonvested, end of period 147 $ 66