ServiceMagic 2014 Annual Report Download - page 98

IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
awards. These plans authorize the Company to grant awards to its employees, officers, directors and consultants. At December 31, 2014 , there are
9.1 million shares available for grant under the Company's stock-based compensation plans.
The plans were adopted in 2005, 2008 and 2013, have a stated term of ten years , and provide that the exercise price of stock options granted
will not be less than the market price of the Company's common stock on the grant date. The plans do not specify grant dates or vesting schedules
of awards as those determinations have been delegated to the Compensation and Human Resources Committee of IAC's Board of Directors (the
"Committee"). Each grant agreement reflects the vesting schedule for that particular grant as determined by the Committee. Broad-based stock
option awards issued to date have generally vested in equal annual installments over a four -year period and RSU awards currently outstanding
generally vest in two 50% installments over a three and four -year period, in each case, from the grant date. PSU awards currently outstanding vest
in two installments of up to 50% over a two -year period from the date of grant. In addition to equity awards outstanding under the three plans,
stock options and other equity awards outstanding under terminated plans and plans assumed in acquisitions are reflected in the information set
forth below.
The amount of stock-based compensation expense recognized in the consolidated statement of operations is reduced by estimated forfeitures,
as the expense recorded is based on awards that are ultimately expected to vest. The forfeiture rate is estimated at the grant date based on historical
experience and revised, if necessary, in subsequent periods if actual forfeitures differ from the estimated rate. At December 31, 2014 , there is
$113.2 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be
recognized over a weighted average period of approximately 2.4 years.
The total income tax benefit recognized in the accompanying consolidated statement of operations for the years ended December 31, 2014 ,
2013 and 2012 related to stock-based compensation is $22.2 million , $19.3 million and $31.3 million , respectively.
Stock Options
Stock options outstanding at December 31, 2014 and changes during the year ended December 31, 2014 is as follows:
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between IAC's closing stock price
on the last trading day of 2014 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the
option holders had all option holders exercised their options on December 31, 2014 . This amount changes based on the fair market value of IAC's
common stock. The total intrinsic value of stock options exercised during the years ended December 31, 2014 , 2013 and 2012 is $63.3 million ,
$65.6 million and $84.8 million , respectively.
75
December 31, 2014
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
(Shares and intrinsic value in thousands)
Outstanding at January 1, 2014
8,074
$
36.98
Granted
747
67.95
Exercised
(1,790
)
31.88
Forfeited
(496
)
46.85
Expired
(15
)
31.13
Outstanding at December 31, 2014
6,520
$
41.19
6.0
$
133,077
Options exercisable
3,647
$
33.50
4.7
$
99,523