Aarons 2012 Annual Report Download - page 78

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68
The following table summarizes information about restricted stock activity:
Restricted Stock
(In Thousands)
Weighted Average
Fair Value
Non-vested at January 1, 2012
415
$ 19.64
Granted 1
368
26.08
Vested
(75)
16.20
Forfeited
(12)
27.84
Non-vested at December 31, 2012
696
23.28
1 Includes 250,000 RSUs granted to certain executive officers that will be eligible to vest on
March 31, 2015 assuming certain performance conditions are achieved over three annual
performance periods. The Company recognizes compensation cost for its performance-based
RSUs over the vesting period based on the probability that the performance condition will be
satisfied.
The total fair value of restricted stock vesting during the year was $4.4 million, $5.7 million and $1.5 million in
2012, 2011 and 2010, respectively.
Retirement and Separation-Related Modifications
In connection with the retirement of the Company’s founder and former Chairman of the Board, the Company
recorded a $10.4 million charge to operating expenses, of which $1.7 million related to the accelerated vesting of
75,000 shares of restricted stock and 25,000 stock options. During 2011, the Company recorded a $3.5 million
charge for separation costs primarily related to the immediate vest modification of 150,000 shares of restricted stock
and 50,000 stock options related to the separation of the Company’s former Chief Executive Officer. The total
incremental cost resulting from the modifications, due primarily to increases in the Company’s stock price as of the
modification date compared to the grant date, was $1.2 million and $1.3 million in 2012 and 2011, respectively.
NOTE 11: STORE COUNT (UNAUDITED)
The Company’s franchised store activity, Company-operated Sales & Lease Ownership store activity and Company-
operated HomeSmart store activity is summarized as follows:
(Unaudited)
2012
2011
2010
Franchised stores
Franchised stores open at January 1,
713
664
597
Opened
56
55
62
Added through acquisition
-
-
10
Purchased from the Company
3
9
10
Purchased by the Company
(21)
(7)
(12)
Closed, sold or merged
(2)
(8)
(3)
Franchised stores open at December 31,
749
713
664
Company-operated Sales & Lease Ownership stores
Company-operated Sales & Lease Ownership stores open at January 1,
1,160
1,146
1,082
Opened
76
57
86
Added through acquisition
21
8
14
Closed, sold or merged
(11)
(51)
(36)
Company-operated Sales & Lease Ownership stores open at December 31,
1,246
1,160
1,146
Company-operated HomeSmart stores
Company-operated HomeSmart stores open at January 1,
71
3
-
Opened
7
24
3
Added through acquisition
1
44
-
Closed, sold or merged
(1)
-
-
Company-operated HomeSmart stores open at December 31,
78
71
3