Enom 2013 Annual Report Download - page 102

Download and view the complete annual report

Please find page 102 of the 2013 Enom annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

Valuation of Awards
The per share fair value of stock options granted with service and/or performance conditions was determined on the date of grant using the
Black-Scholes -Merton option pricing model with the following assumptions:
The expected term of stock options granted represents the weighted average period that the stock options are expected to remain
outstanding. We determine the expected term assumption based on our historical exercise behavior combined with estimates of the post-vesting
holding period. Expected volatility is based on historical volatility of peer companies in our industry that have similar vesting and contractual
terms. The risk free interest rate is based on the implied yield currently available on U.S. Treasury issues with terms approximately equal to the
expected life of the option. We currently have no history or expectation of paying cash dividends on our common stock.
The expected term for performance-based and non-
employee awards is based on the period of time for which each award is expected to be
outstanding, which is typically the remaining contractual term.
Award Activity
Stock Options
Stock option activity is as follows (in thousands, except per share data):
The pre-tax aggregate intrinsic value of outstanding and exercisable stock options is based on the difference between the estimated fair
value of our common stock at December 31, 2013 and 2012 and their exercise prices, respectively for all awards where the fair value of our
common stock exceeds the exercise price. Options expected to vest reflect an estimated forfeiture rate.
Information related to stock-based compensation activity is as follows (in thousands, except per share data):
There was $1.3 million of stock-based compensation expense as of December 31, 2013 related to the non-vested portion of stock options
not yet recognized, which is expected to be recognized over a weighted average period of 1 year.
F-26
Year ended December 31,
2013
2012
(1)
2011
Expected life (in years)
5.50
NA
5.50
Risk
-
free interest rate
0.83
%
NA
1.46
-
2.30
%
Expected volatility range
51
%
NA
56
%
Expected dividend yield
—
NA
—
(1)
We did not grant any stock options to employees during the year ended December 31, 2012.
Weighted
average
Weighted
remaining
Number of
average
contractual
Aggregate
options
exercise
term
intrinsic
outstanding
price
(in years)
value
Outstanding at December 31, 2012
11,846
$
16.34
6.93
$
10,208
Options granted
230
$
8.48
Options exercised
(797
)
$
5.03
Options forfeited or canceled
(6,673
)
$
18.75
Outstanding at December 31, 2013
4,606
$
14.42
3.42
$
1,925
Exercisable at December 31, 2013
4,363
$
14.36
3.24
$
1,925
Vested and expected to vest at December 31, 2013
4,553
$
14.41
3.38
$
1,925
Year ended December 31,
2013
2012
2011
Weighted average fair value of options granted (per option)
$
3.92
$
-
$
8.60
Intrinsic value of options exercised
$
2,179
$
22,863
$
16,487
Total fair value of restricted stock vested
$
17,404
$
19,072
$
8,377