Cash America 2014 Annual Report Download - page 133

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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
118
There were no stock options outstanding as of December 31, 2014, 2013 or 2012. A summary of the
Company’s stock option activity for the year ended December 31, 2012 is shown below. Stock options outstanding
at the beginning of 2012 were granted under the 1994 LTIP.
2012
Shares
Weighted
Average
Exercise
Price
Outstanding at beginning of year
198,900
$
8.95
Exercised (198,900)
8.95
Outstanding at end of year
—
$
—
Exercisable at end of year
—
$
—
Income tax benefits realized from the exercise of stock options for the year ended December 31, 2012 were
$2.2 million and were recorded as an increase in “Additional paid-in capital” in the consolidated statements of
equity.
RSUs
The Company has granted RSUs to Company officers, certain employees and to the non-management
members of the Board of Directors. RSUs granted in 2014 were granted under the 2004 LTIP through April 2014
and thereafter granted under the 2014 LTIP. Each vested RSU entitles the holder to receive a share of the common
stock of the Company. For Company officers and certain employees, the shares are to be issued upon vesting of the
RSUs or, for certain awards granted to officers, upon the officer’s separation from employment with the Company.
Shares for vested RSU awards granted to members of the Board of Directors during 2014 will be issued 13 months
after the grant date. Certain officers and members of the Board of Directors have elected to defer receipt of shares to
be issued under vested RSUs to dates that are later than those described above. In connection with the Enova Spin-
off, all RSUs outstanding for one of the officers of Enova immediately vested at the date of the Enova Spin-off.
As of December 31, 2014, the outstanding RSUs granted to Company officers and certain employees had
original vesting periods ranging from one to 15 years. For executive officers of the Company, a portion of these
annual grants vest over time and a portion of these annual grants vest subject to the Company’s achievement of
certain performance objectives. For RSUs granted to members of the Board of Directors, one-twelfth of the RSUs
vest on the last day of each of the first 12 calendar months beginning with the month in which the awards were
granted. In accordance with ASC 718, the grant date fair value of each RSU is based on the Company’s closing
stock price on the day before the grant date, and the total grant date fair value of performance RSUs is based on the
Company’s estimate at the time of the grant of the most probable outcome expected to be achieved, which was
based on the maximum level of performance for performance RSUs granted in 2014, 2013 and 2012. All awards
granted are subject to clawback provisions. The total grant date fair value of RSU grants is amortized to expense
over the service periods required for vesting and based on the expected outcome of RSU’s subject to performance
contingencies.
Compensation expense related to RSUs totaling $4.1 million ($2.6 million net of related taxes), $4.6 million
($2.9 million net of related taxes) and $4.7 million ($2.9 million net of related taxes) was recognized for 2014, 2013
and 2012, respectively. Total unrecognized compensation cost related to RSUs as of December 31, 2014 was $17.9
million, which will be recognized over a weighted average vesting period of approximately 3.6 years.