Callaway 2015 Annual Report Download - page 103

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F-33
Restricted Stock Units
Restricted stock units awarded under the 2004 Incentive 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 over a three-year period. At December 31, 2015,
2014 and 2013, the weighted average grant-date fair value of restricted stock units granted was $8.33, $8.21 and $6.55,
respectively. The Company recorded $3,539,000, $2,530,000 and $1,694,000 of compensation expense related to restricted
stock units in 2015, 2014 and 2013, respectively.
The table below is a roll-forward of the activity for restricted stock units during the 12 months ended December 31,
2015 (in thousands, except fair value amounts):
Restricted Stock Units Units
Weighted-
Average
Grant-Date
Fair Value
Nonvested at January 1, 2015 ................................................................................................................ 1,223 $ 7.07
Granted............................................................................................................................................ 564 8.33
Vested.............................................................................................................................................. (470) 6.56
Forfeited .......................................................................................................................................... (49) 8.15
Nonvested at December 31, 2015 .......................................................................................................... 1,268 $ 7.77
At December 31, 2015, there was $4,563,000 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 1.24 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 financial goals are measured over a designated
performance period from the date of grant. These performance goals 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 goals are not probable
of achievement during the performance period, compensation expense would be reversed. The awards are forfeited if the
performance goals are not 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 510,000 and 453,000 performance share units during the years ended December 31, 2015 and
2014, respectively, at a weighted average grant-date fair value of $7.96 and $8.20 per share, respectively. Based on the
Company's performance in 2015 and 2014, the participants earned 130.0% and 131.5% of the target award, respectively. The
Company did not grant performance share units during the year ended December 31, 2013. During the year ended December 31,
2015, the Company recognized total compensation expense, net of estimated forfeitures, of $2,607,000 for performance share
units. At December 31, 2015, the unamortized compensation expense related to these awards was $5,509,000, which is expected
to be recognized over a weighted-average period of 1.65 years.