Nutrisystem 2015 Annual Report Download - page 61

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The Company has issued restricted stock to employees generally with vesting terms ranging from two to four
years. The fair value is equal to the market price of the Company’s common stock on the date of grant. Expense
for restricted stock is amortized ratably over the vesting period. The following table summarizes the restricted
stock activity for 2013, 2014 and 2015:
Number
of Shares
Weighted-
Average
Grant-Date
Fair Value
Aggregate
Intrinsic
Value
Nonvested, January 1, 2013 .............................. 830 $13.71
Granted .............................................. 312 $ 8.84
Vested ............................................... (293) $12.72
Forfeited ............................................. (163) $12.64
Nonvested, December 31, 2013 ........................... 686 $12.17
Granted .............................................. 116 $14.99
Vested ............................................... (303) $11.31
Forfeited ............................................. (77) $12.21
Nonvested, December 31, 2014 ........................... 422 $13.56
Granted .............................................. 89 $19.72
Vested ............................................... (183) $11.30
Forfeited ............................................. (52) $13.51
Nonvested, December 31, 2015 ........................... 276 $17.05 $5,958
Additionally, the Company grants performance-based stock units. The performance-based units have
performance conditions and service-based vesting conditions. Each vesting tranche is treated as an individual
award and the compensation expense is recognized on a straight-line basis over the requisite service period for
each tranche. The requisite service period is a combination of the performance period and the subsequent vesting
period based on continued service. The level of achievement of such goals may cause the actual amount of units
that ultimately vest to range from 0% to 200% of the original units granted. The Company recognizes expense
ratably over the vesting period for performance-based restricted stock units when it is probable that the
performance criteria specified will be achieved. The fair value is equal to the market price of the Company’s
common stock on the date of grant.
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