Aarons 2014 Annual Report Download - page 87

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77
years from the date of grant. Plan participants included certain vice presidents, director level employees and other key
personnel in the Company’s home office, divisional vice presidents and regional managers.
During 2012 and 2013, the Company granted performance-based restricted stock to certain executive officers. The
performance-based restricted stock under this program is released at the completion of a three-year period only upon the
achievement of specific performance criteria over three annual performance periods. The compensation expense associated with
these awards is amortized ratably over the vesting period based on the Company’s projected assessment of the level of
performance that will be achieved and earned.
The Company granted 548,000, 307,000 and 368,000 shares of restricted stock at weighted-average fair values of $29.11,
$29.23 and $26.08 in 2014, 2013 and 2012, respectively. The following table summarizes information about restricted stock
activity during 2014:
Restricted Stock
(In Thousands)
Weighted Average
Fair Value
Non-vested at January 1, 2014 682 $ 25.77
Granted 548 29.11
Vested (365) 24.21
Forfeited (167) 27.69
Non-vested at December 31, 2014 698 128.75
1 The outstanding non-vested restricted stock as of December 31, 2014 includes 75,000 shares that are subject to performance
conditions.
The total vest-date fair value of restricted stock and the performance share units described below that vested during the year
was $11.1 million, $184,000 and $2.2 million in 2014, 2013 and 2012, respectively.
Performance Share Units
In 2014, as part of the Company’s long-term incentive compensation program (“LTIP Plan”) and pursuant to the Company’s
2001 Incentive Award Plan, the Company granted a mix of stock options, time-based restricted stock and performance share
units to key executives and managers. For performance share units, which are generally settled in stock, the number of shares
earned is determined at the end of the one-year performance period based upon achievement of certain pre-tax profit and
revenue levels of the Company. If the performance criteria are met, the award is earned, which is then subject to a holding
period of two years in order for the shares to be released. The number of performance-based shares which could potentially be
issued ranges from zero to 200% of the target award.
The compensation expense associated with these awards is amortized ratably over the vesting period based on the Company’s
projected assessment of the level of performance that will be achieved and earned. In the event the Company determines it is no
longer probable that the minimum performance criteria specified in the plan will be achieved, all previously recognized
compensation expense is reversed in the period such a determination is made.
The following table summarizes information about performance share unit activity during 2014:
Performance
Share Units
(In Thousands)
Weighted Average
Fair Value
Non-vested at January 1, 2014 — $ —
Granted 167 32.14
Vested (36) 32.48
Forfeited/unearned (20) 32.22
Non-vested at December 31, 2014 111 32.01