Overstock.com 2015 Annual Report Download - page 40

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Our board of directors adopted the 2005 Equity Incentive Plan in April 2005, and it was most recently amended and restated and re-approved by the
stockholders on May 3, 2012 (as so amended and restated, the "Plan"). Under the Plan, the board of directors may issue non-qualified and incentive stock
options to our employees and directors and non-qualified stock options to our consultants, as well as restricted stock units and other types of equity awards.
Options granted under the Plan generally expire at the end of ten years and vest in accordance with a vesting schedule determined by our board of directors,
usually over four years from the grant date. At December 31, 2015, 2.5 million shares of stock remained available for future grants under the Plan.
The following is a summary of stock option activity (amounts in thousands, except per share data):
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Outstanding—beginning of year
224
$ 17.27
273
$ 17.30
364
$ 17.34
Exercised
(16)
16.94
(30)
17.08
(89)
17.45
Expired/Forfeited
(4)
18.26
(19)
18.00
(2)
17.08
Outstanding—end of year
204
$ 17.27
224
$ 17.27
273
$ 17.30
Options exercisable at year-end
204
$ 17.27
224
$ 17.27
273
$ 17.30
Stock options vest over four years at 28% at the end of the first year and 2% each month thereafter. The most recent stock options were granted in
May 2008 and have fully vested. There was no stock based compensation related to stock options recorded during the years ended December 31, 2015, 2014
and 2013.
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During the years ended December 31, 2015, 2014 and 2013, we granted 239,000, 242,000 and 275,000 restricted stock units, respectively, under the
Plan. The cost of restricted stock units is determined using the fair value of our common stock on the date of the grant and compensation expense is either
recognized on a straight line basis over the vesting schedule or on an accelerated schedule when vesting of restricted stock awards exceeds a straight line
basis. The weighted average grant date fair value of restricted stock units granted during the years ended December 31, 2015, 2014 and 2013 was $24.60,
$28.24 and $16.12, respectively.
The following is a summary of restricted stock unit activity (amounts in thousands, except per share data):
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Outstanding—beginning of year
578
$ 16.70
704
$ 10.79
1,003
$ 8.81
Granted at fair value
239
24.60
242
28.24
275
16.12
Vested
(377)
12.34
(301)
11.87
(339)
10.23
Forfeited
(91)
24.35
(67)
17.70
(235)
9.38
Outstanding—end of year
349
$ 24.80
578
$ 16.70
704
$ 10.79
Restricted stock units granted in 2015 and 2014 vest over three years at 33.3% at the end of each of the first, second and third year. Restricted stock
units granted in 2013 vest over three years at 40% at the end of the first year, 30% at the end of the second year and 30% at the end of the third year. Each
restricted stock unit represents the right to one share of common stock upon vesting. During the years ended December 31, 2015, 2014 and 2013, we recorded
stock based compensation related to restricted stock units of $3.5 million, $4.0 million and $3.3 million, respectively.
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