Nutrisystem 2014 Annual Report Download - page 62

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The performance period starting price is measured as the average closing price over the last 20 trading days prior
to the performance period start.
The following table summarizes the restricted stock unit activity:
Number of
Restricted
Stock Units
Weighted-
Average
Grant-Date
Fair Value
Aggregate
Intrinsic
Value
Nonvested, January 1, 2012 ............................. 36 $17.53
Granted ............................................ 146 $ 8.82
Performance factor adjustment .......................... (47) $ 6.68
Forfeited ............................................ (2) $17.53
Nonvested, December 31, 2012 .......................... 133 $11.76
Granted ............................................ 162 $ 8.68
Performance factor adjustment .......................... (1) $10.70
Vested ............................................. (34) $17.53
Forfeited ............................................ (29) $12.01
Nonvested, December 31, 2013 .......................... 231 $ 8.74
Granted ............................................ 93 $14.95
Performance factor adjustment .......................... 76 $ 8.60
Vested ............................................. (24) $14.72
Forfeited ............................................ (11) $11.69
Nonvested, December 31, 2014 .......................... 366 $ 9.81 $7,150
The Company recorded compensation expense of $4,740, $4,800 and $7,721 in the accompanying consolidated
statements of operations for 2014, 2013 and 2012, respectively, in connection with the issuance of the restricted
shares and restricted stock units. As of December 31, 2014, the Company expects 403 shares of restricted stock
and 355 restricted stock units to vest.
The Company recognized an increase in taxes payable of $68, $203 and $593 in 2014, 2013 and 2012,
respectively, from the exercise of certain stock options and restricted stock and payment of certain dividends and
recorded these amounts as decreases to additional paid-in capital in the accompanying consolidated statements of
stockholders’ equity.
As of December 31, 2014, there was $8,832 of total unrecognized compensation expense related to unvested
share-based compensation arrangements, including market-based units, which is expected to be recognized over a
weighted-average period of 1.3 years. The total unrecognized compensation expense will be fully expensed
through the first quarter of 2018.
11. EMPLOYEE BENEFIT PLAN
The Company maintains a qualified tax deferred defined contribution retirement plan (the “Plan”). Under the
provisions of the Plan, substantially all employees meeting minimum age and service requirements are entitled to
contribute on a before and after-tax basis a certain percentage of their compensation. The Company matched
100% of employees’ first 3% contribution and 50% of the employees’ next 2% contribution. Employees vest
immediately in their contributions and the Company’s contribution. The Company’s contributions in 2014, 2013
and 2012 were $748, $633 and $614, respectively.
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