Enom 2014 Annual Report Download - page 89

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F-25
In addition, 1.3 million options that were awarded during the third quarter 2014 to our chief executive officer and president.
These options were determined on the date of grant using the Hull-White model with the following assumptions: Volatility 61%, risk-
free interest rate 2.43%, early exercise multiple 2.9 years, and dividend rate 0%.
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):
Weighted
average
Weighted
remaining
Number of average
contractual
Aggregate
options
exercise
term
intrinsic
outstanding
price
(in years) value
Outstanding at December 31, 2013 ......................................... 921 $ 72.10 3.42 $ 1,925
Spin Adjustment ...................................................................... (204) $ 67.62
Options granted ....................................................................... 3,215 $ 8.45
Options exercised .................................................................... (34) $ 10.05
Options forfeited or canceled .................................................. (425) $ 94.03
Outstanding at December 31, 2014 ......................................... 3,473 $ 8.65 9.33 $ 353
Exercisable at December 31, 2014 .......................................... 303 $ 10.50 4.27 $ 73
Vested and expected to vest at December 31, 2014 ................ 3,323 $ 8.78 9.30 $ 328
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, 2014 and 2013 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):
Year ended December 31,
2014
2013
2012
Weighted average fair value of options granted (per option) ............................... $ 4.21 $ 3.92 $ -
Intrinsic value of options exercised ...................................................................... $ 303 $ 2,179 $ 22,863
Total fair value of restricted stock vested ............................................................ $ 18,308 $ 17,404 $ 19,072
There was $12.1 million of stock-based compensation expense as of December 31, 2014 related to the non-vested portion of
stock options not yet recognized, which is expected to be recognized over a weighted average period of 3.4 year.