Thrifty Car Rental 2009 Annual Report Download - page 76

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Performance shares earned are delivered based upon vesting of the grant, provided the grantee is
then employed by the Company. For instances of retirement, involuntary termination without cause,
disability or death, performance share awards vest on a pro-rata basis based on the current
accounting accrual, but will not be issued until the end of the performance period or earlier, if
needed to comply with the Internal Revenue Code Section 409A. Any performance share
installments not earned at the end of the requisite service period are forfeited. In March 2009, the
2006 grant of performance shares earned from January 1, 2006 through December 31, 2008 and
the 2007 and 2008 grants of performance shares for terminated employees, net of forfeitures,
totaling 64,000 shares vested, were settled through the issuance of common stock totaling
approximately $2.5 million. No shares were used for net settlement to offset taxes. In January
2008, the 2005 grant of performance shares 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 $0.9 million. Historically, substantially all of these shares were directed
to the deferred compensation plan by the Company at the request and for the benefit of the
employees. In 2009 and 2008, substantially all of these shares were issued to the employees.
The following table presents the status of the Company’s nonvested performance shares for the
periods indicated:
Weighted-Average
Shares Grant-Date
Nonvested Shares (In Thousands) Fair Value
Nonvested at January 1, 2007 702 35.67$
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
Granted - -
Vested (64) 46.36
Forfeited (89) 46.05
Nonvested at December 31, 2009 188 39.75$
At December 31, 2009, the total compensation cost related to nonvested performance share awards
not yet recognized is estimated at approximately $0.3 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 1.0 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
2009, 2008 and 2007 was $0.1 million, $1.5 million and $9.5 million, respectively. As of December
31, 2009, the intrinsic value of the nonvested performance shares was $4.8 million.
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