Avis 2015 Annual Report Download - page 103

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F-34
(c) The Company’s outstanding time-based RSUs, performance-based and market-based RSUs, and cash units had aggregate
intrinsic value of $30 million, $34 million and $4 million, respectively. Aggregate unrecognized compensation expense related to
time-based RSUs and performance-based and market-based RSUs amounted to $32 million and will be recognized over a
weighted average vesting period of 0.8 years. The Company assumes that substantially all outstanding awards will vest over
time.
Stock Options
The annual stock option activity consisted of (in thousands of shares):
Number of
Options
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
(in millions)
Weighted
Average
Remaining
Contractual
Term (years)
Outstanding at January 1, 2015 848 $ 2.92 $ 54 4.3
Granted (a) — —
Exercised (b) (20) 5.28 1
Forfeited/expired (1) 0.79
Outstanding and exercisable at December 31, 2015 (c) 827 $ 2.87 $ 28 3.3
__________
(a) No stock options were granted during 2014 or 2013.
(b) Stock options exercised during 2014 and 2013 had intrinsic values of $6 million and $23 million, respectively, and the cash
received from the exercise of options was insignificant in 2015 and 2014 and $3 million in 2013.
(c) The Company assumes that substantially all outstanding stock options will vest over time.
Non-employee Directors Deferred Compensation Plan
The Company grants stock awards on a quarterly basis to non-employee directors representing between
50% and 100% of a director’s annual compensation and such awards can be deferred under the Non-
employee Directors Deferred Compensation Plan. During 2015, 2014 and 2013, the Company granted
22,000, 20,000 and 33,000 awards, respectively, to non-employee directors.
Employee Stock Purchase Plan
The Company is authorized to sell shares of its common stock to eligible employees at 95% of fair market
value. This plan has been deemed to be non-compensatory and therefore, no compensation expense has
been recognized.
Stock-Compensation Expense
During 2015, 2014 and 2013, the Company recorded stock-based compensation expense of $26 million
($17 million, net of tax), $34 million ($21 million, net of tax) and $24 million ($14 million, net of tax),
respectively. In jurisdictions with net operating loss carryforwards, exercises and/or vestings of stock-based
awards have generated $140 million of total tax deductions at December 31, 2015. Approximately $55
million of tax benefits will be recorded in additional paid-in capital when these tax deductions are realized in
these jurisdictions.
17. Employee Benefit Plans
Defined Contribution Savings Plans
The Company sponsors several defined contribution savings plans in the United States and certain foreign
subsidiaries that provide certain eligible employees of the Company an opportunity to accumulate funds for
retirement. The Company matches portions of the contributions of participating employees on the basis
specified by the plans. The Company’s contributions to these plans were $32 million, $34 million and $39
million during 2015, 2014 and 2013, respectively.
Defined Benefit Pension Plans
The Company sponsors defined benefit pension plans in the United States and in certain foreign
subsidiaries with some plans offering participation in the plans at the employees’ option. Under these plans,