Memorex 2014 Annual Report Download - page 71

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66
Total stock-based compensation expense associated with stock options related to continuing operations
recognized in our Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012
was $1.4 million, $2.7 million and $3.3 million, respectively. This expense would result in related tax benefits of $0.5
million, $0.9 million and $1.1 million for the years ended December 31, 2014, 2013 and 2012, respectively.
However, these tax benefits are included in the U.S. deferred tax assets which are subject to a full valuation
allowance, and due to the valuation allowance, we did not recognize the related tax benefits in 2014, 2013 or 2012.
As of December 31, 2014 there was $0.5 million of total unrecognized compensation expense related to
outstanding stock options. That expense is expected to be recognized over a weighted average period of 1.1 years.
No related stock-based compensation was capitalized as part of an asset for the years ended December 31,
2014, 2013 or 2012.
Restricted Stock
The following table summarizes our restricted stock activity:
Restricted
Stock
Weighted
Average Grant
Date Fair Value
Per Share
Nonvested as of December 31, 2011 795,046 $ 10.02
Granted 708,573 5.67
Vested (321,103) 10.30
Forfeited (156,712) 8.72
Nonvested as of December 31, 2012 1,025,804 $ 7.12
Granted 837,443 3.75
Vested (561,099) 6.99
Forfeited (109,827) 6.59
Nonvested as of December 31, 2013 1,192,321 $ 4.87
Granted 1,229,249 3.65
Vested (734,533) 5.19
Forfeited (338,120) 3.95
Nonvested as of December 31, 2014 1,348,917 $ 3.81
Of the restricted stock granted during the year ended December 31, 2014 and 2013, 914,768 and 529,141,
respectively, were performance-based restricted stock that vest based on the Company's cost reduction efforts and
performance against EBITDA targets for the subsequent three year period. Our 2014 performance was met and,
accordingly, some of the restricted stock for 2014 vested and will be issued subsequent to December 31, 2014. Our
2013 performance was partially met and, accordingly, some of the restricted stock for 2013 vested and will be
issued subsequent to December 31, 2013. No performance-based restricted shares were granted during the year
ended December 31, 2012.
The total fair value of shares that vested during the years 2014, 2013 and 2012 was $3.8 million, $3.9 million
and $3.3 million, respectively.
Total stock-based compensation expense associated with restricted stock relating to continuing operations
recognized in our Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012
was $3.9 million, $3.6 million and $3.3 million, respectively. This expense would result in related tax benefits of $1.5
million, $1.5 million and $1.4 million for the years ended December 31, 2014, 2013 and 2012, respectively.
However, these tax benefits are included in the U.S. deferred tax assets which are subject to a full valuation
allowance and due to the valuation allowance, we did not recognize the related tax benefit in 2014, 2013 and 2012.
As of December 31, 2014 there was $2.4 million of total unrecognized compensation expense related to
outstanding restricted stock. That expense is expected to be recognized over a weighted average period of
1.5 years.
No related stock-based compensation was capitalized as part of an asset for the years ended December 31,
2014, 2013 or 2012.