Thrifty Car Rental 2009 Annual Report Download - page 77

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Restricted Stock Units – Under the LTIP, the Committee may grant restricted stock units to key
employees and non-employee directors. The grant-date fair value of the award is based on the
closing market price of the Company’s common shares at the date of the grant. The Company
recognizes compensation expense on a straight-line basis over the vesting period.
In January 2009, non-employee directors were granted 95,812 shares with a grant-date fair value of
$1.23 and 56,910 shares that have the right to receive cash payments at the settlement date price,
which vested on December 31, 2009. In 2008, non-employee directors were granted 7,000 shares
with a grant-date fair value of $11.58 and the right to receive cash payments representing 15,295
shares at the settlement date price, which vested on December 31, 2008. In 2007, non-employee
directors were granted 21,610 restricted stock units with a grant-date fair value of $46.90, which
vested on December 31, 2007. The Company recognized compensation costs of $1.6 million, $0.1
million and $1.0 million in 2009, 2008 and 2007, respectively, for restricted stock units. In 2009,
compensation costs included $1.5 million related to liability-based restricted stock units, based on
director elections. 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.
In May 2008, an employee director was granted 13,550 shares that vest in equal installments over
four years with a grant-date fair value of $13.98 per share and 50,000 shares in October 2008 that
vest in equal installments over three years with a grant-date fair value of $0.97 per share. The
employee director was also granted 50,000 shares in May 2009 with a grant-date fair value of $4.44
per share that vest in installments over three years with 20% vesting in each of 2010 and 2011 and
the remaining 60% vesting in 2012. In 2009, an employee director was issued 20,053 restricted
stock units that vested during the year. At December 31, 2009, the total compensation cost related
to nonvested restricted stock unit awards not yet recognized is approximately $0.1 million, which will
be recognized over the vesting period of the restricted stock.
The following table presents the status of the Company’s nonvested restricted stock units for the
periods indicated:
Weighted-Average
Shares Grant-Date
Nonvested Shares (In Thousands) Fair Value
Nonvested at January 1, 2007 - -$
Granted 22 46.90
Vested (22) 46.90
Forfeited - -
Nonvested at December 31, 2007 - -
Granted 71 4.52
Vested (7) 11.58
Forfeited - -
Nonvested at December 31, 2008 64 3.74
Granted 146 2.33
Vested (116) 1.57
Forfeited - -
Nonvested at December 31, 2009 94 4.24$
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