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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Restricted stock awards were valued at the quoted market price of the Company's common stock on the date of grant and expensed using the straight-line
method over the vesting or service period of the award. Following is a summary of restricted stock activity:
Weighted
Total Average
Shares Price
Restricted stock outstanding at December 31, 2004 1,097,145 $ 19.06
Granted 118,400 $ 19.79
Vested and issued (499,436) $ 20.33
Forfeited (23,170) $ 18.19
Restricted stock outstanding at December 31, 2005 692,939 $ 18.28
During 2005, the Company recognized expense totaling $1.5 million related to its options; no expense was recognized in 2004 or 2003. The Company
recognized expense totaling $2.3 million, $1.9 million and $1.4 million related to its restricted stock in 2005, 2004 and 2003, respectively. As of
December 31, 2005, there was $3.2 million and $1.5 million of total unrecognized compensation expense related to nonvested options and restricted stock,
respectively. That expense is expected to be recognized over a weighted average period of 2.13 years for options and 0.62 years for restricted stock. The total
fair value of options that vested during 2005, 2004 and 2003 was $9.3 million, $20.2 million and $31.5 million, respectively, on the vesting date. (The fair
value of options that vested during 2004 and 2003 are based on the historical Viad stock price.) The total fair value of restricted stock that vested during 2005
and 2004 was $9.9 million and $5.8 million. No restricted stock vested in 2003.
Assuming that the Company had recognized compensation cost for stock option grants in accordance with the fair value method of accounting prior to
January 1, 2005, net income and diluted and basic income per share would be as follows:
2004 2003
(Dollars in thousands,
except per share data)
Net income, as reported $ 86,412 $ 113,902
Plus: stock-based compensation expense recorded under APB 25, net of tax 1,483 1,406
Less: stock-based compensation expense determined under the fair value method,
net of tax (3,869) (6,058)
Pro forma net income $ 84,026 $ 109,250
Basic earnings per share:
As reported $ 0.99 $ 1.31
Pro forma $ 0.97 $ 1.27
Diluted earnings per share:
As reported $ 0.99 $ 1.31
Pro forma $ 0.96 $ 1.26
F-39