Callaway 2013 Annual Report Download - page 103

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F-33
The following table summarizes the Company’s stock option activities for the year ended December 31, 2013 (in
thousands, except price per share and contractual term):
Options
Number
of Shares
Weighted-
Average
Exercise Price
Per Share
Weighted-
Average
Remaining
Contractual
Ter m
Aggregate
Intrinsic
Val ue
Outstanding at January 1, 2013 ........................................................ 5,167 $ 11.08
Granted...................................................................................... 1,842 6.53
Exercised................................................................................... (216) 7.66
Forfeited .................................................................................... (86) 6.77
Expired ...................................................................................... (2,215) 11.15
Outstanding at December 31, 2013 .................................................. 4,492 $ 9.42 5.66 $ 4,446
Vested and expected to vest in the future at December 31, 2013..... 4,365 $ 9.51 5.56 $ 4,208
Exercisable at December 31, 2013................................................... 2,598 $ 11.48 3.27 $ 989
The weighted-average grant-date fair value of options granted during the years ended December 31, 2013, 2012
and 2011 was $2.47, $2.63 and $2.94 per share, respectively.
At December 31, 2013, there was $3,220,000 of total unrecognized compensation expense related to options granted
to employees under the Company’s share-based payment plans. That cost is expected to be recognized over a weighted-
average period of 2.0 years. The amount of unrecognized compensation expense noted above does not necessarily represent
the amount that will ultimately be realized by the Company in its consolidated statement of operations.
The total intrinsic value for options exercised during the years ended December 31, 2013 and 2012 was $243,000
and $3,000, respectively. Cash received from the exercise of stock options for the years ended December 31, 2013 and
2012 was $1,652,000 and $19,000, respectively. There were no stock option exercises in 2011.
Restricted Stock Units
Restricted stock units awarded under the 2004 Plan and the 2013 Directors Plan are recorded at the Company’s
closing stock price on the date of grant. Restricted stock units generally vest at the end of a three year period. At
December 31, 2013, 2012 and 2011, the weighted average grant-date fair value of restricted stock units granted was $6.55,
$6.36 and $7.01, respectively. The Company recorded $1,694,000, $1,556,000 and $1,799,000 of compensation expense
related to restricted stock units, in 2013, 2012 and 2011, respectively. The table below is a roll-forward of the activity for
restricted stock units during the 12 months ended December 31, 2013 (in thousands, except fair value amounts):
Restricted Stock Units Units
Weighted-
Average
Grant-Date
Fair Value
Nonvested at January 1, 2013........................................................................................................... 647 $ 6.87
Granted ............................................................................................................................................. 440 6.55
Vested................................................................................................................................................ (193) 7.86
Forfeited............................................................................................................................................ (21) 6.78
Nonvested at December 31, 2013..................................................................................................... 873 $ 6.49
At December 31, 2013, there was $3,398,000 of total unrecognized compensation expense related to nonvested
restricted stock units granted to employees under the Company’s share-based payment plans. That cost is expected to be
recognized over a weighted-average period of 1.64 years.
Phantom Stock Units
PSUs awarded under the 2004 Plan are a form of share-based award that are indexed to the Company’s stock and
are settled in cash. Because PSUs are settled in cash, compensation expense recognized over the vesting period will vary