O'Reilly Auto Parts 2012 Annual Report Download - page 75

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65
For the Year Ended December 31,
2012 2011 2010
Compensation expense for stock options awarded (in millions) $ 18.5 $ 17.6 $ 14.9
Income tax benefit from compensation expense related to stock options (in millions) 7.1 6.8 5.7
Total intrinsic value of stock options exercised (in millions) 113.6 71.5 60.0
Cash received from exercise of stock options (in millions) 54.9 50.3 56.9
Weighted-average grant-date fair value of options awarded $ 23.57 $ 16.93 $ 14.24
Weighted-average remaining contractual life of exercisable options (in years) 5.13 5.12 5.21
The remaining unrecognized compensation expense related to unvested stock option awards at December 31, 2012, was $53.5 million
and the weighted-average period of time over which this cost will be recognized is 3.0 years.
Restricted stock:
The Company’s performance incentive plan provides for the award of shares of restricted stock to its corporate and senior
management that vest evenly over a three-year period and are held in escrow until such vesting has occurred. Generally, unvested
shares are forfeited when an employee ceases employment. The fair value of shares awarded under this plan is based on the closing
market price of the Company’s common stock on the date of award and compensation expense is recorded evenly over the vesting
period.
The table below identifies the employee restricted stock activity under this plan during the year ended December 31, 2012:
Shares
(in thousands)
Weighted-Average Grant-Date
Fair Value
N
on-vested at December 31, 2011 40 $ 50.72
Granted during the period 18 86.90
Vested during the period (1) (30) 55.11
Forfeited during the period (1) 61.08
N
on-vested at December 31, 2012 27 $ 70.64
(
1
)
Includes 13 thousand shares withheld to cover employees' taxes upon vesting.
The Company’s director stock plan provides for the award of shares of restricted stock that vest evenly over a three-year period and
are held in escrow until such vesting has occurred. Generally, unvested shares are forfeited when a director ceases their service on the
Company’s Board of Directors. The fair value of shares awarded under this plan is based on the closing market price of the
Company’s common stock on the date of award and compensation expense is recorded evenly over the vesting period.
The table below identifies the director restricted stock activity under this plan during the year ended December 31, 2012:
Shares
(in thousands)
Weighted-Average Grant-Date
Fair Value
N
on-vested at December 31, 2011 8 $ 59.65
Granted during the period 5 102.39
Vested during the period (3) 59.65
Forfeited during the period - -
N
on-vested at December 31, 2012 10 $ 79.58
The following table summarizes activity related to restricted stock awarded by the Company for the years ended December 31, 2012,
2011 and 2010:
For the Year Ended December 31,
2012 2011 2010
Compensation expense for restricted shares awarded (in millions) $ 2.0 $ 1.7 $ 0.9
Income tax benefit from compensation expense related to restricted shares (in millions) $ 0.8 $ 0.6 $ 0.4
Total fair value of restricted shares at vest date (in millions) $ 2.7 $ 2.6 $ 1.6
Shares awarded under the plans (in thousands) 23.7 49.9 41.1
Average grant-date fair value of shares awarded under the plans $ 90.10 $ 56.18 $ 39.57