Polaris 2015 Annual Report Download - page 83

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Total share-based compensation expenses were as follows (in thousands):
For the Years Ended
December 31,
2015 2014 2013
Option plan .................................... $26,191 $24,428 $22,245
Other share-based awards .......................... 23,275 26,574 57,640
Total share-based compensation before tax .............. 49,466 51,002 79,885
Tax benefit ..................................... 18,451 19,039 29,835
Total share-based compensation expense included in net
income ...................................... $31,015 $31,963 $50,050
These share-based compensation expenses are reflected in cost of sales and operating expenses in the
accompanying consolidated statements of income. For purposes of determining the estimated fair value of
option awards on the date of grant under ASC Topic 718, Polaris has used the Black-Scholes option-pricing
model. Assumptions utilized in the model are evaluated and revised, as necessary, to reflect market conditions
and experience.
At December 31, 2015, there was $90,990,000 of total unrecognized share-based compensation expense related
to unvested share-based equity awards. Unrecognized share-based compensation expense is expected to be
recognized over a weighted-average period of 1.62 years. Included in unrecognized share-based compensation
is approximately $36,622,000 related to stock options and $54,368,000 for restricted stock.
General stock option and restricted stock information. The following summarizes stock option activity and the
weighted average exercise price for the following plans for the each of the three years ended December 31,
2015, 2014 and 2013:
Omnibus Plan Option Plan Director Stock Option Plan
(Active) (Frozen) (Frozen)
Weighted Weighted Weighted
Average Average Average
Outstanding Exercise Outstanding Exercise Outstanding Exercise
Shares Price Shares Price Shares Price
Balance as of December 31, 2012 ......... 4,330,410 $ 35.50 353,572 $23.47 16,000 $27.10
Granted ........................ 1,037,729 87.06 — — — —
Exercised ....................... (821,679) 24.45 (191,141) 23.23 (16,000) 27.10
Forfeited ....................... (80,380) 47.55 — — — —
Balance as of December 31, 2013 ......... 4,466,080 $ 49.29 162,431 $23.74 — —
Granted ........................ 705,564 130.10 — — — —
Exercised ....................... (866,917) 30.33 (96,398) 23.77 — —
Forfeited ....................... (98,215) 65.14 (2,800) 22.43 — —
Balance as of December 31, 2014 ......... 4,206,512 $ 66.38 63,233 $23.76 — —
Granted ........................ 743,062 150.81 — — — —
Exercised ....................... (706,750) 40.21 (44,283) 23.92 — —
Forfeited ....................... (137,285) 112.95 — — — —
Balance as of December 31, 2015 ......... 4,105,539 $ 84.61 18,950 $23.37 — —
Vested or expected to vest as of
December 31, 2015 ................. 4,105,539 $ 84.61 18,950 $23.37 — —
Options exercisable as of December 31, 2015 1,990,346 $ 48.05 18,950 $23.37 — —
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