Callaway 2014 Annual Report Download - page 102

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F-34
The table below is a roll-forward of the activity for restricted stock units during the 12 months ended December 31,
2014 (in thousands, except fair value amounts):
Restricted Stock Units Units
Weighted-
Average
Grant-Date
Fair Value
Nonvested at January 1, 2014 .......................................................................................................... 873 $ 6.49
Granted ..................................................................................................................................... 425 8.21
Vested........................................................................................................................................ (75) 6.85
Forfeited.................................................................................................................................... — —
Nonvested at December 31, 2014 .................................................................................................... 1,223 $ 7.07
At December 31, 2014, there was $3,944,000 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 1.14 years.
Performance Share Units
Performance share units awarded under the 2004 Incentive Plan are stock-based awards in which the number of shares
ultimately received depends on the Company's performance against specified metrics are measured over a one-year
performance period from the date of grant. These performance metrics were established by the Company at the beginning of
the performance period. At the end of the performance period, the number of shares of stock that could be issued is fixed
based upon the degree of achievement of the performance goals. The number of shares that could be issued can range from
50% to 150% of the participant's target award. Performance share units are initially valued at the Company's closing stock
price on the date of grant. Compensation expense is recognized over the vesting period and is reduced by an estimate for
forfeitures, and will vary based on remeasurements during the performance period. If the performance metrics are not probable
of achievement during the performance period, compensation expense would be reversed. The awards are forfeited if the
performance metrics are achieved as of the end of the performance period. The performance units vest in full at the end of a
three year period.
The Company granted 596,000 performance share units during the year ended December 31, 2014, inclusive of
incremental shares that were issued as a result of the Company achieving the performance metrics as of December 31, 2014.
The shares were granted at a weighted average grant-date fair value of $8.20 per share. There were no performance share units
vested or forfeited during the year ended December 31, 2014. The Company did not grant performance share units during the
years ended December 31, 2013 or 2012. During the year ended December 31, 2014, the Company recognized total
compensation expense, net of estimated forfeitures, of $1,303,000 for performance share units. At December 31, 2014,
unamortized compensation expense related to these awards was $3,840,000.
Phantom Stock Units
Phantom stock units awarded under the 2004 Incentive Plan are a form of share-based award that are indexed to the
Company’s stock and are settled in cash. Because phantom stock units are settled in cash, compensation expense recognized
over the vesting period will vary based on changes in fair value. Fair value is remeasured at the end of each interim reporting
period based on the closing price of the Company’s stock. Phantom stock units vest at the end of a three year period.
The weighted average grant-date fair value per share of phantom stock units granted to employees during the years ended
December 31, 2012 was $6.37. There were no phantom stock units granted in the years ended December 31, 2014 or 2013.