O'Reilly Auto Parts 2015 Annual Report Download - page 69

FORM 10-K
61
The following table summarizes activity related to restricted stock awarded by the Company for the years ended December 31, 2015,
2014 and 2013 (in thousands, except per share data):
For the Year Ended
December 31,
2015 2014 2013
Compensation expense for restricted shares awarded $ 1,625 $ 2,621 $ 2,191
Income tax benefit from compensation expense related to restricted shares $ 610 $ 970 $ 836
Total fair value of restricted shares at vest date $ 3,284 $ 3,749 $ 3,294
Shares awarded under the plans 416 22
Weighted-average grant-date fair value of shares awarded under the plans $ 208.56 $ 147.23 $ 102.63
The remaining unrecognized compensation expense related to unvested restricted share awards at December 31, 2015, was $1.2 million
and the weighted-average period of time over which this cost will be recognized is 2.2 years.
Employee stock purchase plan:
The Company's employee stock purchase plan (the "ESPP") permits eligible employees to purchase shares of the Company's common
stock at 85% of the fair market value. Employees may authorize the Company to withhold up to 5% of their annual salary to participate
in the plan. The fair value of shares issued under the ESPP is based on the average of the high and low market prices of the Company's
common stock during the offering periods. Compensation expense is recognized based on the discount between the grant-date fair value
and the employee purchase price for the shares sold to employees.
The following table summarizes activity related to the Company's ESPP for the years ended December 31, 2015, 2014 and 2013 (in
thousands, except per share data):
For the Year Ended
December 31,
2015 2014 2013
Compensation expense for shares issued under the ESPP $ 2,065 $ 1,769 $ 1,695
Income tax benefit from compensation expense for shares issued under the ESPP $ 773 $ 655 $ 647
Shares issued under the ESPP 60 77 101
Weighted-average price of shares issued under the ESPP $ 195.04 $ 130.12 $ 95.51
Profit sharing and savings plan:
The Company sponsors a contributory profit sharing and savings plan (the "401(k) Plan") that covers substantially all employees who
are at least 21 years of age and have at least six months of service. The Company makes matching contributions equal to 100% of the
first 2% of each employee's wages that are contributed and 25% of the next 4% of each employee's wages that are contributed. An
employee must be employed on December 31 to receive that year's Company matching contribution, with the matching contribution
funded annually at the beginning of the subsequent year following the year in which the matching contribution was earned. The Company
may also make additional discretionary profit sharing contributions to the plan on an annual basis as determined by the Board of Directors.
The Company did not make any discretionary contributions to the 401(k) Plan during the years ended December 31, 2015, 2014 or 2013.
The Company expensed matching contributions under the 401(k) Plan in the amounts of $18.5 million, $16.8 million and $16.5 million
for the years ended December 31, 2015, 2014 and 2013, respectively.
Nonqualified deferred compensation plan:
The Company sponsors a nonqualified deferred compensation plan (the "Deferred Compensation Plan") for highly compensated employees
whose contributions to the 401(k) Plan are limited due to the application of the annual limitations under the Internal Revenue Code. The
Deferred Compensation Plan provides these employees with the opportunity to defer the full 6% of matched compensation, including
salary and incentive based compensation that was precluded under the Company's 401(k) Plan due to the annual limitations, which is
then matched by the Company using the same formula as the 401(k) Plan. An employee must be employed on December 31 to receive
that year's Company matching contribution, with the matching contribution funded annually at the beginning of the subsequent year
following the year in which the matching contribution was earned. In the event of bankruptcy, the assets of this plan are available to
satisfy the claims of general creditors. The Company has an unsecured obligation to pay, in the future, the value of the deferred
compensation and Company match adjusted to reflect the performance, whether positive or negative, of selected investment measurement
options chosen by each participant during the deferral period. The liability for compensation deferred under the Deferred Compensation
Plan was $16.9 million and $15.4 million as of December 31, 2015 and 2014, respectively, and was included within "Other liabilities"