Thrifty Car Rental 2007 Annual Report Download - page 76

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requisite service period are forfeited. In January 2007, the 2004 grant of performance shares
earned from January 1, 2004 through December 31, 2006, net of forfeitures, totaling approximately
230,000 shares vested, were settled through the issuance of approximately 202,000 shares of
common stock totaling approximately $5,800,000, and approximately 28,000 shares were used for
net settlement to offset taxes totaling approximately $900,000. In June 2006, the 2003 grant of
performance shares earned from January 1, 2003 through December 31, 2005, net of forfeitures,
totaling approximately 273,000 shares vested, were settled through the issuance of approximately
238,000 shares of common stock totaling approximately $3,900,000, and approximately 35,000
shares were used for net settlement to offset taxes totaling approximately $500,000. On January
31, 2005, the remaining portion of the 2002 grant of performance shares earned in 2002, net of
forfeitures, totaling approximately 28,000 shares were settled through the issuance of common stock
totaling approximately $638,000. Substantially all of these shares were directed to the deferred
compensation plan by the Company at the request and for the benefit of the employees.
The following table presents the status of the Company’s nonvested performance shares for the
periods indicated:
Weighted-Average
Shares Grant-Date
Nonvested Shares (In Thousands) Fair Value
Nonvested at January 1, 2005 569 21.22$
Granted 248 36.13
Vested - -
Forfeited (3) 22.63
Nonvested at December 31, 2005 814 26.16
Granted 214 45.80
Vested (273) 16.31
Forfeited (53) 23.45
Nonvested at December 31, 2006 702 35.67
Granted 152 55.94
Vested (230) 28.89
Forfeited (102) 35.34
Nonvested at December 31, 2007 522 44.69$
At December 31, 2007, the total compensation cost related to nonvested performance share awards
not yet recognized is estimated at approximately $6,400,000, depending upon the Company’s
performance against targets specified in the performance share agreement. This estimated
compensation cost is expected to be recognized over the weighted-average period of 1.7 years.
Values of the performance shares earned will be recognized as compensation expense over the
requisite service period. The total intrinsic value of vested and issued performance shares during
2007, 2006 and 2005 was $9,504,000, $10,514,000 and $638,000, respectively.
Restricted Stock Units – Under the LTIP, the Committee may grant restricted stock units to key
employees and non-employee directors. In 2007, 2006 and 2005, non-employee directors were
granted 21,610, 27,511 and 24,500 restricted stock units, respectively, which vested on December
31, 2007, 2006 and 2005, respectively. The Company recognized compensation costs of
$1,014,000, $1,048,000 and $844,000 in 2007, 2006 and 2005, respectively, for restricted stock
units. The Committee generally grants restricted stock units to non-employee directors. These
grants generally vest at the end of the fiscal year in which the grants were made. For the awards
granted in 2007, 2006 and 2005, the grant-date fair value of the award was based on the closing
market price of the Company’s common shares at the date of grant.
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