Thrifty Car Rental 2008 Annual Report Download - page 76

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earned from January 1, 2005 through December 31, 2007, net of forfeitures, totaling 138,000 shares
vested, were settled through the issuance of approximately 110,000 shares of common stock
totaling approximately $4.0 million, and approximately 28,000 shares were used for net settlement to
offset taxes totaling approximately $1.0 million. 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 $5.8 million, and approximately 28,000 shares were
used for net settlement to offset taxes totaling approximately $0.9 million. 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 $3.9 million, and
approximately 35,000 shares were used for net settlement to offset taxes totaling approximately
$0.5 million. Historically, substantially all of these shares were directed to the deferred
compensation plan by the Company at the request and for the benefit of the employees. In 2008,
substantially all of these shares were issued to the employees.
The following table presents the status of the Company’s nonvested performance shares for the
periods indicated:
Weighted-Average
Shares Grant-Date
Nonvested Shares (In Thousands) Fair Value
Nonvested at January 1, 2006 814 26.16$
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
Granted 162 25.21
Vested (138) 37.47
Forfeited (205) 38.00
Nonvested at December 31, 2008 341 41.93$
At December 31, 2008, the total compensation cost related to nonvested performance share awards
not yet recognized is estimated at approximately $2.5 million, 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 1.5 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
2008, 2007 and 2006 was $1.5 million, $9.5 million and $10.5 million, respectively. As of December
31, 2008, the intrinsic value of the nonvested performance shares was $0.4 million.
Restricted Stock Units – Under the LTIP, the Committee may grant restricted stock units to key
employees and non-employee directors.
In 2008, non-employee directors were granted 7,000 shares and the right to receive cash payments
representing 15,295 shares at the settlement date price, which vested on December 31, 2008. In
2007 and 2006, non-employee directors were granted 21,610 and 27,511 restricted stock units,
74