Spirit Airlines 2014 Annual Report Download - page 76

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Notes to Financial Statements—(Continued)
76
were calculated as the remaining term of the performance period at the date of grant. The risk-free interest rate was based on
the implied yield available on U.S. Treasury zero-coupon issues with remaining terms equivalent to the remaining performance
period. The Company does not intend to pay dividends on its common stock in the foreseeable future. Accordingly, the
Company used a dividend yield of zero in its model.
The following table summarizes the Company’s performance share awards for the year ended December 31, 2014:
Number of
Awards
Weighted-Average
Fair Value at Grant
Date ($)
Outstanding at December 31, 2013. . . . . . . . . . . . . . . . . 327,104 22.94
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,841 59.45
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (185,907) 20.40
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (52,468) 23.92
Outstanding at December 31, 2014. . . . . . . . . . . . . . . . . 142,570 39.67
As of December 31, 2014 and December 31, 2013, there was $4.5 million and $6.5 million, respectively, of total
unrecognized compensation cost related to performance share awards expected to be recognized over 1.64 years and 1.54 years,
respectively.
9. Net Income per Share
The following table sets forth the computation of basic and diluted earnings per common share:
Year Ended December 31,
2014 2013 2012
(in thousands, except per share amounts)
Numerator:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 225,464 $ 176,918 $ 108,460
Denominator:
Weighted-average shares outstanding, basic. . . . . . . . . . . . . . 72,739 72,593 72,386
Effect of dilutive stock awards . . . . . . . . . . . . . . . . . . . . . . . . 555 406 205
Adjusted weighted-average shares outstanding, diluted . . . . . 73,294 72,999 72,591
Net Income per Share:
Basic earnings per common share. . . . . . . . . . . . . . . . . . . . . . $ 3.10 $ 2.44 $ 1.50
Diluted earnings per common share . . . . . . . . . . . . . . . . . . . . $ 3.08 $ 2.42 $ 1.49
Anti-dilutive weighted-average shares . . . . . . . . . . . . . . . . . . 29 1 88
10. Debt and Other Obligations
Long-term Debt
On October 1, 2014, the Company entered into a Framework Agreement, with a bank syndicate which will provide up
to $379 million of debt financing for seven Airbus A320 aircraft and three Airbus A321 aircraft. Each loan to be extended under
the Framework Agreement will be funded on or about the delivery date of each aircraft and will be secured by a first-priority
security interest in the individual aircraft. Each loan amortizes quarterly on a mortgage-style basis, with senior loans having a
12-year term and junior loans having a 7-year term. Loans will bear interest payable quarterly on a floating rate basis, provided
that the Company may elect in advance a fixed rate basis. As of December 31, 2014, the Company has taken delivery of four
Airbus A320 aircraft financed through the Framework Agreement and recorded debt of $148 million. The remaining three Airbus
A320 aircraft and three Airbus A321 aircraft are scheduled for delivery under the Company's existing purchase agreement with
Airbus between January 2015 and September 2015.