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INVACARE CORPORATION AND SUBSIDIAIRIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-28
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the
following weighted-average assumptions for awards granted in 2014 and 2013 as no options were granted in 2015:
2014 2013
Expected dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3% 0.4%
Expected stock price volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.8% 38.2%
Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.76% 0.82%
Expected life in years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1 6.1
Forfeiture percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.0% 9.2%
Expected dividend yields are based on historical dividends as the company has no current intention of changing its dividend
policy. Expected stock price volatility percentages are calculated at each date of grant based on historical stock prices for a period
of time commensurate with the expected life of the option. The assumed expected lives and forfeiture percentages are based on
the company's historical analysis of option history.
The weighted-average fair value of options granted during 2014 and 2013 was $6.23 and $5.33, respectively. The weighted-
average remaining contractual life of options outstanding at December 31, 2015, 2014 and 2013 was 4.3, 5.0 and 5.8 years,
respectively. The weighted-average contractual life of options exercisable at December 31, 2015 was 4.0 years. The total intrinsic
value of stock awards exercised in 2015, 2014 and 2013 was $1,107,000, $101,000 and $158,000, respectively. As of December 31,
2015, the intrinsic value of all options outstanding and of all options exercisable was $2,562,000 and $1,636,000, respectively.
The exercise of stock awards in 2015, 2014 and 2013 resulted in cash received by the company totaling $2,413,000, $480,000
and $512,000 for each period, respectively with no tax benefits for any period. The total fair value of awards vested during 2015,
2014 and 2013 was $1,867,000, $3,436,000 and $3,778,000, respectively.
Restricted Stock and Restricted Stock Units
The following table summarizes information about restricted shares and restricted share units (for non-U.S. recipients):
2015
Weighted
Average
Fair Value 2014
Weighted
Average
Fair Value 2013
Weighted
Average
Fair Value
Stock / Units unvested at January 1 . . . . . . 312,423 $ 17.91 264,878 $ 16.69 260,548 $ 19.15
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,839 19.09 218,276 19.36 114,700 14.49
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . (56,976) 16.47 (93,140) 17.62 (97,445) 20.33
Canceled . . . . . . . . . . . . . . . . . . . . . . . . . . (94,781) 18.11 (77,591) 17.58 (12,925) 19.23
Stock / Units unvested at December 31 . . . 641,505 $ 18.89 312,423 $ 17.91 264,878 $ 16.69
The restricted stock awards vest ratably over the three years after the award date, except for those awards granted in 2014,
which vest after a three-year period. Unearned restricted stock compensation, determined as the market value of the shares at the
date of grant, is being amortized on a straight-line basis over the vesting period.