Western Union 2014 Annual Report Download - page 280

2014 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
142
In 2012, the Company started granting bonus stock units out of the 2006 LTIP to the non-employee directors of the Company.
Since bonus stock units vest immediately, compensation expense is recognized on the date of grant based on the fair value of the
awards when granted. These awards may be settled immediately unless the participant elects to defer the receipt of common shares
under the applicable plan rules. Prior to making equity grants to non-employee directors out of the 2006 LTIP, the Company granted
non-employee directors of the Company options and unrestricted stock units out of the 2006 Non-Employee Director Equity
Compensation Plan, which was fully utilized in 2013.
Stock Option Activity
A summary of Western Union stock option activity for the year ended December 31, 2014 was as follows (options and aggregate
intrinsic value in millions):
Year Ended December 31, 2014
Options Weighted-Average Exercise Price
Weighted-Average
Remaining
Contractual Term
(Years)
Aggregate
Intrinsic
Value
Outstanding as of January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.8 $ 18.05
Granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 $ 16.01
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.1) $ 14.11
Cancelled/forfeited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7.2) $ 18.94
Outstanding as of December 31 . . . . . . . . . . . . . . . . . . . . . . . . 16.4 $ 17.80 4.7 $ 20.7
Options exercisable as of December 31. . . . . . . . . . . . . . . . . . 12.5 $ 18.50 3.6 $ 10.9
The Company received $14.2 million, $28.6 million and $51.9 million in cash proceeds related to the exercise of stock options
during the years ended December 31, 2014, 2013 and 2012, respectively. Upon the exercise of stock options, shares of common
stock are issued from authorized common shares.
The Company realized total tax benefits during the years ended December 31, 2014, 2013 and 2012 from stock option exercises
of $0.9 million, $1.3 million and $1.2 million, respectively.
The total intrinsic value of stock options exercised during the years ended December 31, 2014, 2013 and 2012 was $3.5
million, $4.2 million and $5.1 million, respectively.
Restricted Stock Activity
A summary of Western Union activity for restricted stock units and performance-based restricted stock units for the year ended
December 31, 2014 is listed below (units in millions):
Year Ended December 31, 2014
Number
Outstanding Weighted-Average Grant-Date Fair Value
Non-vested as of January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3 $ 15.69
Granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 $ 14.74
Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.4) $ 19.27
Forfeited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.9) $ 14.57
Non-vested as of December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6 $ 14.68