Lumber Liquidators 2015 Annual Report Download - page 76

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Lumber Liquidators Holdings, Inc.
Notes to Consolidated Financial Statements
(amounts in thousands, except share data and per share amounts)
Note 7. Stock-Based Compensation − (continued)
U.S. Treasury zero-coupon issues with an equivalent remaining term. The expected term of the options
represents the estimated period of time until exercise and is determined by considering the contractual terms,
vesting schedule and expectations of future employee behavior.
Restricted Shares
The following table summarizes activity related to restricted shares:
Shares
Weighted
Average Grant
Date Fair
Value
Nonvested, December 31, 2012 ......................... 152,405 $15.19
Granted ....................................... 80,814 66.11
Released ....................................... (38,362) 75.73
Forfeited ....................................... (16,522) 37.51
Nonvested, December 31, 2013 ......................... 178,335 $22.82
Granted ....................................... 38,260 89.46
Released ....................................... (45,503) 95.02
Forfeited ....................................... (14,003) 54.90
Nonvested, December 31, 2014 ......................... 157,089 $15.00
Granted ....................................... 386,517 18.30
Released ....................................... (27,187) 41.57
Forfeited ....................................... (54,748) 45.93
Nonvested, December 31, 2015 ......................... 461,671 $12.95
The fair value of restricted shares released during 2015, 2014 and 2013 was $941, $4,371 and $3,060,
respectively. As of December 31, 2015, total unrecognized compensation cost related to unvested restricted
shares was approximately $5,141, net of estimated forfeitures, which is expected to be recognized over a
weighted average period of approximately 2.4 years.
Stock Appreciation Rights
The following table summarizes activity related to SARs:
Shares
Weighted
Average
Exercise
Price
Remaining
Average
Contractual
Term (Years)
Aggregate
Intrinsic
Value
Balance, December 31, 2012 ............... 9,301 $ 17.79 6.5 $261
Granted ........................... 7,533 62.52
Forfeited ........................... (678) 29.04
Balance, December 31, 2013 ............... 16,156 $ 33.04 7.3 $938
Granted ........................... 1,941 100.05
Forfeited ........................... (1,870) 60.71
Balance, December 31, 2014 ............... 16,227 $ 42.81 6.9 $389
Granted ........................... — 0.00
Forfeited ........................... (170) 93.68
Balance, December 31, 2015 ............... 16,057 $ 47.58 6.8 $ —
Exercisable at December 31, 2015 ........... 10,420 $ 41.59 6.6 $ —
The fair value method, estimated by management using the Black-Scholes-Merton option pricing model,
is used to recognize compensation cost associated with SARs.
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