Orbitz 2008 Annual Report Download - page 112

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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
12. Equity-Based Compensation (Continued)
Based on the above assumptions, the weighted average grant-date fair value of stock options granted during the year ended December 31, 2005 was $5.89.
Restricted Stock Units
Restricted stock units granted by Cendant entitled employees, including certain of our employees, to receive one share of Cendant common stock upon
vesting. In 2004, Cendant adopted performance and time vesting criteria for restricted stock unit grants. The predetermined performance criteria determined the
number of restricted stock units that will ultimately vest and were based on the growth of Cendant earnings and cash flows over the vesting period of the
respective award. The number of restricted stock units that vested may range from 0% to 200% of the base award. Vesting occurred over a four-year period, but
did not exceed 25% of the base award in each of the three years following the grant date.
The table below summarizes our employees' restricted stock unit activity in the Cendant Plan during the period from January 1, 2006 to August 22, 2006
and the year ended December 31, 2005:
Predecessor
Period January 1, 2006 to August 22, 2006
Year Ended December 31, 2005
Number of
Restricted Stock
Units
Weighted Average
Grant Date Fair
Value (per share)
Number of
Restricted Stock
Units
Weighted Average
Grant Date Fair
Value (per share)
Balance at beginning of year or period 1,570,957 $ 15.51 1,347,924 $ 14.84
Granted(a) — — 288,077 20.06
Vested/exercised (69,732) 19.88 (18,777) 20.03
Forfeited/cancelled (180,098) 21.25 (46,267) 22.62
Vested/converted as a result of the Blackstone Acquisition (1,321,127) 13.11 — —
Balance at end of year or period — — 1,570,957 $ 15.51
(a)
In 2005, reflects the maximum number of restricted stock units assuming achievement of all performance and time vesting criteria.
Compensation Expense
We recognized total equity-based compensation expense of $8 million and $2 million during the year ended December 31, 2007 and the period from
August 23, 2006 to December 31, 2006, respectively, none of which has provided us a tax benefit.
For the period January 1, 2006 to August 22, 2006 and for the year ended December 31, 2005, Cendant allocated pre-tax equity based compensation
expense of $4 million and $8 million, respectively, to us, none of which has provided us a tax benefit.
105
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008