Aarons 2013 Annual Report Download - page 73

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The following table summarizes information about stock options outstanding at December 31, 2013:
Options Outstanding
Weighted Average Options Exercisable
Range of Exercise
Prices Number Outstanding December 31, 2013 Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable December 31, 2013 Weighted Average Exercise Price
$10.01-15.00 471,250 4.13 $ 14.15 471,250 $ 14.15
15.01-19.92 215,250 6.11 19.90 57,750 19.83
$10.01-19.92 686,500 4.75 15.95 529,000 14.77
The table below summarizes option activity for the year ended December 31, 2013:
Options
(In Thousands) Weighted Average Exercise Price
Weighted Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
(in Thousands)
Weighted
Average Fair
Value
Outstanding at January 1, 2013 1,513 $ 14.81
Granted — —
Exercised (728) 13.71
Forfeited/expired (98) 15.29
Outstanding at December 31, 2013 687 15.95 4.75 $ 9,233 $ 7.02
Expected to Vest at December 31, 2013 132 19.92 6.15 1,253 10.67
Exercisable at December 31, 2013 529 14.77 4.33 7,740 5.94
The aggregate intrinsic value of options exercised was $11.0 million, $20.0 million and $5.5 million in 2013, 2012 and 2011,
respectively. The total fair value of options vested was $2.7 million, $2.2 million and $2.7 million in 2013, 2012 and 2011,
respectively. Income tax benefits resulting from stock option exercises totaled $4.2 million, $8.4 million, and $2.1 million in
2013, 2012 and 2011, respectively.
Restricted Stock
Shares of restricted stock or restricted stock units (collectively, “restricted stock”) may be granted to employees and directors
and typically vest over approximately two to five year periods. Restricted stock grants may be subject to one or more objective
employment, performance or other forfeiture conditions as established at the time of grant.
Restricted shares granted with performance conditions are typically granted to eligible participants upon achievement of certain
pre-tax profit and revenue levels by the employees' operating units or the overall Company. Plan participants include certain
vice presidents, director level employees and other key personnel in the Company’s home office, divisional vice presidents and
regional managers.
In addition, the Company grants time-based restricted stock to certain executive officers, as well as performance-based
restricted stock that will be eligible to vest at the completion of a three-year period assuming certain performance conditions are
achieved over three annual performance periods. The Company recognizes compensation cost for its performance-based
restricted stock over the vesting period based on the probability that the performance condition will be satisfied.
Any shares of restricted stock that are forfeited may again become available for issuance. Compensation cost for restricted
stock is equal to the fair market value of the shares at the date of the award and is amortized to compensation expense on a
straight-line basis over the vesting period. The Company granted 307,000, 368,000 and 266,000 shares of restricted stock at
weighted-average fair values of $29.23, $26.08 and $23.57 in 2013, 2012 and 2011, respectively.
The following table summarizes information about restricted stock activity:
Restricted Stock
(In Thousands) Weighted Average Fair Value
Non-vested at January 1, 2013 696 $ 23.28
Granted 307 29.23
Vested (6) 28.22
Forfeited (315) 23.60
Non-vested at December 31, 2013 682 25.77
The total fair value of restricted stock vesting during the year was $722,000, $4.4 million and $5.7 million in 2013, 2012 and
2011, respectively.