TripAdvisor 2015 Annual Report Download - page 82
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ThefairvalueofstockoptiongrantshasbeenestimatedatthedateofgrantusingtheBlack–Scholesoptionpricingmodelwiththefollowingweighted
averageassumptionsfortheperiodspresented:
December 31,
2015 2014 2013
Riskfreeinterestrate 1.58% 1.79% 1.41%
Expectedterm(inyears) 5.42 5.80 6.06
Expectedvolatility 41.79% 44.04% 50.78%
Expecteddividendyield —% —% —%
Theweighted-averagegrantdatefairvalueofoptionsgranted,excludingassumedacquisition-relatedoptions,was$33.02,$46.65,and$28.30fortheyears
endedDecember31,2015,2014,and2013,respectively.Theweighted-averagegrantdatefairvalueofassumedacquisition-relatedoptionswas$80.31fortheyear
endedDecember31,2014.Referto“Note3—Acquisitions and Dispositions” inthenotestoourconsolidatedfinancialstatementsforadditionalinformationon
ouracquisitions.ThetotalfairvalueofstockoptionsvestedfortheyearsendedDecember31,2015,2014,and2013were$36million,$34million,and$27
million,respectively.
2015 RSU Activity
DuringtheyearendedDecember31,2015,weissued1,016,626RSUsunderthe2011IncentivePlanforwhichthefairvaluewasmeasuredbasedonthe
quotedpriceofourcommonstockonthedateofgrant.TheseRSUsgenerallyvestoverafour-yearrequisiteserviceperiod.
ThefollowingtablepresentsasummaryofourRSUactivity:
Weighted
Average
Grant- Aggregate
RSUs Date Fair Intrinsic
Outstanding Value Per Share Value
(in thousands) (in millions)
UnvestedRSUsoutstandingasofDecember31,2014 1,448 $ 71.33
Granted 1,017 82.95
Vestedandreleased(1) (440) 66.58
Cancelled (275) 72.76
UnvestedRSUsoutstandingasofDecember31,2015 1,750 $ 79.02 $ 149
ExpectedtovestafterDecember31,2015 1,556 $ 78.77 $ 133
(1) Inclusiveof128,341RSUswithheldtosatisfyemployeeminimumtaxwithholdingrequirementsduetonetsharesettlement.Potentialshareswhichhad
beenconvertibleunderRSUsthatwerewithheldundernetsharesettlementremainintheauthorizedbutunissuedpoolunderthe2011IncentivePlanand
canbereissuedbytheCompany.Totalpaymentsfortheemployees’taxobligationstothetaxingauthoritiesduetonetsharesettlementsarereflectedasa
financingactivitywithintheconsolidatedstatementsofcashflows.
Unrecognized Stock-Based Compensation
Asummaryofourremainingunrecognizedcompensationexpense,netofestimatedforfeitures,andtheweightedaverageremainingamortizationperiodat
December31,2015relatedtoournon-vestedstockoptionsandRSUawardsispresentedbelow(inmillions,exceptperyearinformation):
Stock
Options RSUs
Unrecognizedcompensationexpense(netofforfeitures) $ 56 $ 94
Weightedaverageperiodremaining(inyears) 2.5 2.7
79