TripAdvisor 2015 Annual Report Download - page 81

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OnSeptember12,2014,wefiledaRegistrationStatementonFormS-8withrespecttoupto100,595sharesofourcommonstockforissuanceunderthe
Viator,Inc.2010StockIncentivePlan,asamended(the“ViatorPlan”).PursuanttotheAmendedandRestatedAgreementandPlanofMergeramong
TripAdvisorLLC;VineyardAcquisitionCorporationandViator,Inc.,datedasofJuly24,2014(the“MergerAgreement”),VineyardAcquisitionCorporation
mergedwithandintoViator,Inc.withViator,Inc.survivingasawholly-ownedsubsidiaryoftheCompany.InaccordancewiththeMergerAgreement,we
assumedcertainoutstandingoptionstopurchasesharesofcommonstockofViatorgrantedundertheViatorPlan(the“AssumedOptions”).Asaresultofthis
assumption,theAssumedOptionswereconvertedintooptionstopurchasesharesofourcommonstock.Wedonotintendtograntnewequityorequity-based
awardsundertheViatorPlan.
Pursuanttothe2011IncentivePlan,wemay,amongotherthings,grantRSUs,restrictedstock,stockoptionsandotherstock-basedawardstoourdirectors,
officers,employeesandconsultants.Thesummaryofthematerialtermsofthe2011IncentivePlanisqualifiedinitsentiretybythefulltextofthe2011Incentive
Planpreviouslyfiled.
AsofDecember31,2015,thetotalnumberofsharesavailableforissuanceunderthe2011IncentivePlanis17,200,758shares.Allsharesofcommonstock
issuedinrespectoftheexerciseofoptionsorotherequityawardssinceSpin-Offhavebeenissuedfromauthorized,butunissuedcommonstock.
Stock Based Award Activity and Valuation
2015 Stock Option Activity
DuringtheyearendedDecember31,2015,wehaveissued586,851ofservicebasednon-qualifiedstockoptionsfromthe2011IncentivePlan.Thesestock
optionsgenerallyhaveatermoftenyearsfromthedateofgrantandgenerallyvestequitablyoverafour-yearrequisiteserviceperiod.
Asummaryofourstockoptionactivityispresentedbelow:
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    Weighted Weighted    
      Average Average    
      Exercise Remaining Aggregate
  Options Price Per Contractual Intrinsic
  Outstanding Share Life Value
  (in thousands)      (in years) (in millions)
OptionsoutstandingatDecember31,2014   8,651  $ 44.47        
Granted   587   83.78        
Exercised(1)   (3,187)   33.78        
Cancelledorexpired   (331)   57.44        
OptionsoutstandingatDecember31,2015   5,720  $ 53.71   5.6  $ 187
ExercisableasofDecember31,2015   2,480  $ 36.69   4.3  $ 122
VestedandexpectedtovestafterDecember31,2015   5,610  $ 53.30   5.6  $ 186
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(1) Inclusiveof1,978,692options,whichwerenotconvertedintosharesduetonetsharesettlementinordertocovertheaggregateexercisepriceandthe
minimumamountofrequiredemployeewithholdingtaxes.Potentialshareswhichhadbeenconvertibleunderstockoptionsthatwerewithheldundernet
sharesettlementremainintheauthorizedbutunissuedpoolunderthe2011IncentivePlanandcanbereissuedbytheCompany.Totalpaymentsforthe
employees’taxobligationstothetaxingauthoritiesduetonetsharesettlementsarereflectedasafinancingactivitywithintheconsolidatedstatementsof
cashflows.
Aggregateintrinsicvaluerepresentsthedifferencebetweentheclosingstockpriceofourcommonstockandtheexercisepriceofoutstanding,in-the-money
options.OurclosingstockpriceasreportedonNASDAQasofDecember31,2015was$85.25.Thetotalintrinsicvalueofstockoptionsexercisedfortheyears
endedDecember31,2015,2014,and2013were$149million,$75million,and$58million,respectively.
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