American Home Shield 2011 Annual Report Download - page 113

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 18. Stock-Based Compensation (Continued)
A summary of option activity under the MSIP as of December 31, 2011, and changes during the year then ended is presented below:
Stock
Options
Weighted
Avg.
Exercise
Price
Weighted
Avg.
Remaining
Contractual
Term (in years)
Total outstanding, December 31, 2010 9,601,683 $ 10.00
Granted to employees 2,280,391 $ 11.00
Exercised (500,000) $ 10.00
Forfeited (976,225) $ 10.00
Expired (782,175) $ 10.00
Total outstanding, December 31, 2011 9,623,674 $ 10.24 6.6
Total exercisable, December 31, 2011 6,783,358 $ 10.00 5.6
Holdings granted ServiceMaster's executives, officers and employees 350,454 and 735,000 RSUs in 2011 and 2010, respectively, with grant date fair
values of $11.00 and $10.00 per unit, respectively, which was equivalent to the then current fair value of Holdings' common stock. Holdings' Compensation
Committee determined the fair market value of Holdings common stock as of December 31, 2011 was $14 per share. No RSUs were granted in 2009. All
RSUs, with the exception of the performance-based RSUs discussed below, will vest in three equal annual installments, subject to an employee's continued
employment. During 2011, the Company issued 20,000 RSUs with vesting subject to certain performance conditions to the president of TruGreen. These
performance-based RSUs will vest as follows: (i) up to 10,000 units will vest on December 31, 2012, and (ii) up to 10,000 units will vest on December 31,
2013 based on the Holdings' Compensation Committee's evaluation of the achievement of certain qualitative performance conditions, in its sole discretion, by
the TruGreen president. The performance-based RSUs do not meet the criteria required under ASC 718 for the establishment of a grant date. As a result, the
performance-based RSUs are not included in the total outstanding RSUs as of December 31, 2011. Upon vesting, each RSU will be converted into one share
of Holdings' common stock.
A summary of RSU activity under the MSIP as of December 31, 2011, and changes during the year then ended is presented below:
RSUs
Weighted Avg.
Grant Date
Fair Value
Total outstanding, December 31, 2010 735,000 $ 10.00
Granted to employees 350,454 $ 11.00
Vested (176,669) $ 10.00
Forfeited (225,000) $ 10.00
Total outstanding, December 31, 2011 683,785 $ 10.51
During the years ended December 31, 2011, 2010 and 2009, the Company recognized stock-based compensation expense of $8.4 million ($5.2 million,
net of tax), $9.4 million ($5.7 million, net of tax) and $8.1 million ($5.0 million, net of tax), respectively. As of December 31, 2011, there was
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