O'Reilly Auto Parts 2015 Annual Report Download - page 66

FORM 10-K
58
NOTE 8 – SHARE REPURCHASE PROGRAM
In January of 2011, the Company's Board of Directors approved a share repurchase program. Under the program, the Company may,
from time to time, repurchase shares of its common stock, solely through open market purchases effected through a broker dealer at
prevailing market prices, based on a variety of factors such as price, corporate trading policy requirements and overall market conditions.
The Company's Board of Directors may increase or otherwise modify, renew, suspend or terminate the share repurchase program at any
time, without prior notice. As announced on February 4, 2015, May 29, 2015, and February 10, 2016, the Company's Board of Directors
each time approved a resolution to increase the authorization amount under the share repurchase program by an additional $500 million,
$500 million and $750 million, respectively, resulting in a cumulative authorization amount of $6.3 billion. Each additional authorization
is effective for a three-year period, beginning on its respective announcement date.
The following table identifies shares of the Company's common stock that have been repurchased as part of the Company's publicly
announced share repurchase program (in thousands, except per share data):
For the Year Ended
December 31,
2015 2014
Shares repurchased 4,901 5,743
Average price per share $ 231.81 $ 150.86
Total investment $ 1,136,139 $ 866,398
As of December 31, 2015, the Company had $143.2 million remaining under its share repurchase program. Subsequent to the end of the
year and through February 26, 2016, the Company repurchased an additional 0.8 million shares of its common stock under its share
repurchase program, at an average price of $247.61, for a total investment of $201.6 million. The Company has repurchased a total of
52.1 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and
through February 26, 2016, at an average price of $106.76, for a total aggregate investment of $5.6 billion.
NOTE 9 – SHARE-BASED COMPENSATION AND BENEFIT PLANS
The Company recognizes share-based compensation expense based on the fair value of the grants, awards or shares at the time of the
grant, award or issuance. Share-based compensation includes stock option awards issued under the Company's employee incentive plans
and director stock plan, restricted stock awarded under the Company's employee incentive plans, performance incentive plan and director
stock plan, stock issued through the Company's employee stock purchase plan and stock awarded to employees through other benefit
programs.
The table below identifies the shares that have been authorized for issuance and the shares available for future issuance under the Company
plans, as of December 31, 2015 (in thousands):
December 31, 2015
Plans
Total Shares Authorized for Issuance
under the Plans
Shares Available for Future Issuance
under the Plans
Employee Incentive Plans 34,000 6,334
Director Stock Plan 1,000 263
Performance Incentive Plan 650 383
Employee Stock Purchase Plans 4,250 764
Profit Sharing and Savings Plan 4,200 349
Stock options:
The Company's employee incentive plans provide for the granting of stock options for the purchase of common stock of the Company
to certain key employees of the Company. Employee stock options are granted at an exercise price that is equal to the closing market
price of the Company's common stock on the date of the grant. Employee stock options granted under the plans expire after ten years
and typically vest 25% per year, over four years. The Company records compensation expense for the grant date fair value of the option
awards, adjusted for estimated forfeitures, evenly over the minimum required service period.