Orbitz 2014 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2014 Orbitz annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
78
PSUs granted during the years ended December 31, 2014, 2013 and 2012 was $12.64, $3.34 and $2.40 per unit,
respectively.
Stock Options
The table below summarizes the stock option activity under the Plan during the year ended December 31, 2014:
Shares
Weighted-
Average
Exercise Price
(per share)
Weighted-
Average
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding at January 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . 1,227,719 $ 4.84
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (88,885) $ 5.25
Cancelled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,143) $ 6.28
Outstanding at December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . 1,131,691 $ 4.80 1.7 $ 3,888
Exercisable at December 31, 2014. . . . . . . . . . . . . . . . . . . . . . . 1,131,691 $ 4.80 1.7 $ 3,888
The exercise price of stock options granted under the Plan is equal to the fair market value of the underlying stock on the
date of grant. Stock options generally expire seven to ten years from the grant date. Stock options vest either annually over a
four-year period, or 25% of the options vest after one year and the remaining awards vest ratably on a monthly basis for the
three years that follow. The fair value of stock options on the date of grant is amortized on a straight-line basis over the
requisite service period. There were no stock options granted in 2014, 2013 or 2012.
During the years ended December 31, 2014, 2013 and 2012, the total fair value of options that vested during the
period was $0.7 million, $1.1 million and $1.3 million, respectively. In addition, the intrinsic value of options exercised was
$0.3 million, $3.1 million, and $0 for the years ended December 31, 2014, 2013 and 2012, respectively.
Non-Employee Directors Deferred Compensation Plan
We have a deferred compensation plan that enables our non-employee directors to defer the receipt of certain
compensation earned in their capacity as non-employee directors. Eligible directors may elect to defer up to 100% of their
annual retainer fees (which are paid by us on a quarterly basis). In addition, 100% of the annual equity granted to non-
employee directors is deferred under the Plan.
We grant deferred stock units (“DSUs”) annually to each participating director. The DSUs are issued as restricted stock
units under the Plan and are immediately vested and non-forfeitable. The DSUs entitle the non-employee director to receive
one share of our common stock for each deferred stock unit following the director’s retirement or termination of service from
the Board of Directors. For all awards granted prior to 2011, the DSUs are distributed 200 days immediately following such
termination date and for all awards granted in 2011 or later, the DSUs are distributed immediately at termination. The entire
grant date fair value of deferred stock units is expensed on the date of grant.
The table below summarizes the deferred stock unit activity under the Plan during the year ended December 31, 2014:
Deferred
Stock Units
Weighted-
Average
Grant Date
Fair Value
(per share)
Outstanding at January 1, 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 923,306 $ 4.41
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,563 $ 7.94
Distributed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (550,357) $ 5.10
Outstanding at December 31, 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493,512 $ 4.50