Invacare 2015 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 of the 2015 Invacare 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 140

  • 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
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

INVACARE CORPORATION AND SUBSIDIAIRIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-27
Total unrecognized compensation cost will be adjusted for future changes in actual and estimated forfeitures and for updated
vesting assumptions for the performance share awards (see "Performance Shares and Performance Share Units" below). No tax
benefit for share-based compensation was realized during 2015, 2014 and 2013 as a result of a valuation allowance against deferred
tax assets. In accordance with ASC 718, any tax benefits resulting from tax deductions in excess of the compensation expense
recognized is classified as a component of financing cash flows.
Stock Options
Generally, non-qualified stock option awards typically have a term of ten years and are granted at the fair market value of
the company’s common shares on the date of grant. The company expects the compensation expense to be recognized over a
weighted-average period of approximately 2 years.
The following table summarizes information about stock option activity for the three years ended 2015, 2014 and 2013:
2015
Weighted
Average
Exercise
Price 2014
Weighted
Average
Exercise
Price 2013
Weighted
Average
Exercise
Price
Options outstanding at
January 1 . . . . . . . . . . . . . . . . . 3,600,132 $ 22.74 4,533,782 $ 23.86 4,664,634 $ 26.21
Granted . . . . . . . . . . . . . . . . . . . — 0.00 8,977 16.71 756,700 14.47
Exercised . . . . . . . . . . . . . . . . . (172,218) 13.95 (33,810) 14.16 (30,166) 16.94
Canceled . . . . . . . . . . . . . . . . . . (485,131) 34.98 (908,817) 28.57 (857,386) 28.63
Options outstanding at
December 31 . . . . . . . . . . . . . . 2,942,783 $ 21.22 3,600,132 $ 22.74 4,533,782 $ 23.86
Options exercise price range at
December 31 . . . . . . . . . . . . . . $ 13.37 to $ 13.37 to $ 13.35 to
$ 33.36 $ 47.80 $ 47.80
Options exercisable at
December 31 . . . . . . . . . . . . . . 2,656,983 2,954,082 2,985,175
Shares available for grant at
December 31* . . . . . . . . . . . . . 2,659,562 3,654,426 4,460,337
________________________
* Shares available for grant as of December 31, 2015 reduced by net restricted stock / unit and performance share / unit award
activity of 1,110,740 shares and 681,058 shares, respectively.
The following table summarizes information about stock options outstanding at December 31, 2015:
Options Outstanding Options Exercisable
Exercise Prices
Number
Outstanding
At 12/31/15
Weighted Average
Remaining
Contractual Life
Years
Weighted Average
Exercise Price
Number
Exercisable
At 12/31/15
Weighted Average
Exercise Price
$ 13.37 – $20.00. . . . 778,159 6.7 $ 14.12 493,671 $ 14.11
$ 20.01 – $25.00. . . . 1,353,578 3.3 22.59 1,353,578 22.59
$ 25.01 – $30.00. . . . 783,738 3.7 25.55 783,738 25.55
$ 30.01 – $33.36. . . . 27,308 1.0 31.74 25,996 31.73
Total . . . . . . . . . . . . . 2,942,783 4.3 $ 21.22 2,656,983 $ 21.98
Pursuant to the Plans, the Committee has established that grants may not be exercised within one year from the date granted
and options must be exercised within ten years from the date granted. Accordingly, for the stock options issued in 2014 and 2013,
25% of such options vested in the year following issuance. The stock options awarded during such years provided a four-year
vesting period whereby options vest equally in each year. Options granted with graded vesting are accounted for as single
options. The 2015, 2014 and 2013 expense has been adjusted for estimated forfeitures of awards that will not vest because service
or employment requirements have not been met.