Plantronics 2015 Annual Report Download - page 70

Restricted Stock
Restricted stock consists of awards of restricted stock and restricted stock units ("RSUs"). The following is a summary of the
Company’s restricted stock activity during fiscal year 2015:
Number of Shares
Weighted Average
Grant Date Fair Value
(in thousands)
Non-vested at March 31, 2014 1,172 $ 39.52
Restricted stock granted 666 $ 45.28
Restricted stock vested (456) $ 38.64
Restricted stock forfeited (92) $ 41.34
Non-vested at March 31, 2015 1,290 $ 42.67
The weighted average grant-date fair value of restricted stock is based on the quoted market price of the Company's common stock
on the date of grant. The weighted average grant-date fair values of restricted stock granted during fiscal years 2015, 2014 and
2013 were $45.28, $46.02, and $32.22, respectively. The total grant-date fair values of restricted stock that vested during fiscal
years 2015, 2014, and 2013 were $17.6 million, $12.8 million, and $7.9 million, respectively.
As of March 31, 2015, the total unrecognized compensation cost related to non-vested restricted stock awards was $32.8 million
and is expected to be recognized over a weighted average period of 1.7 years.
Valuation Assumptions
The Company estimates the fair value of stock options and ESPP shares using a Black-Scholes option valuation model. At the
date of grant, the Company estimated the fair value of each stock option grant and purchase right granted under the ESPP using
the following weighted average assumptions:
Employee Stock Options ESPP
Fiscal Year Ended March 31, 2015 2014 2013 2015 2014 2013
Expected volatility 28.4% 32.2% 41.8% 25.5% 26.5% 32.4%
Risk-free interest rate 1.4% 0.9% 0.6% 0.1% 0.1% 0.1%
Expected dividends 1.3% 0.9% 1.2% 1.2% 0.9% 1.0%
Expected life (in years) 4.2 4.2 4.3 0.5 0.5 0.5
Weighted-average grant date fair
value $ 10.33 $ 11.15 $ 10.31 $ 10.57 $ 9.62 $ 9.00
The expected stock price volatility for the years ended March 31, 2015, 2014, and 2013 was determined based on an equally
weighted average of historical and implied volatility. Implied volatility is based on the volatility of the Company’s publicly traded
options on its common stock with terms of six months or less. The Company determined that a blend of implied volatility and
historical volatility is more reflective of market conditions and a better indicator of expected volatility than using exclusively
historical volatility. The expected life was determined based on historical experience of similar awards, giving consideration to
the contractual terms of the stock-based awards, vesting schedules, and expectations of future employee behavior. The risk-free
interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected
life of the option. The dividend yield assumption is based on our current dividend and the market price of our common stock at
the date of grant.
11. COMMON STOCK REPURCHASES
From time to time, the Board authorizes programs under which the Company may repurchase shares of its common stock, depending
on market conditions, in the open market or through privately negotiated transactions. Repurchased shares are held as treasury
stock until such time they are retired or re-issued. During the years ended March 31, 2015, 2014, and 2013, the Company
repurchased 2,221,448, 1,949,407, and 751,706 shares of its common stock, respectively, for a total cost of $112.9 million, $85.7
million, and $23.9 million, respectively, and at an average price per share of $50.84, $43.94, and $31.84, respectively.
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