Tesla 2015 Annual Report Download - page 87

In January 2014, to create incentives for continued long term success beyond the Model S program and to closely align executive pay with
our stockholders’
interests in the achievement of significant milestones by our company, the Compensation Committee of our Board of Directors
granted stock options to certain employees to purchase 782,500 shares of our common stock. Each such grant consists of four vesting tranches
with a vesting schedule based entirely on the attainment of future performance milestones, assuming continued employment and service to us
through each vesting date.
As of December 31, 2014, the following performance milestone was considered probable of achievement.
As the above performance milestone was considered probable of achievement, we recorded stock-based compensation expense of $10.7
million for the year ended December 31, 2014.
Summary Stock Based Compensation Information
The following table summarizes the stock-based compensation expense by line item in the consolidated statements of operations (in
thousands):
We realized no income tax benefit from stock option exercises in each of the periods presented due to recurring losses and valuation
allowances.
As of December 31, 2014, we had $412.7 million of total unrecognized compensation expense, net, of estimated forfeitures, that will be
recognized over a weighted-average period of 5.0 years.
Employee Stock Purchase Plan
Employees are eligible to purchase common stock through payroll deductions of up to 15% of their eligible compensation, subject to any
plan limitations. The purchase price of the shares on each purchase date is equal to 85% of the lower of the fair market value of our common
stock on the first and last trading days of each six-month offering period. During the years ended December 31, 2014, 2013 and 2012, 163,600,
518,743 and 373,526 shares were issued under the ESPP for $28.6 million, $13.8 million and $8.4 million, respectively. A total of 3,615,749
shares of common stock have been reserved for issuance under the ESPP, and there were 2,336,422 shares available for issuance under the ESPP
as of December 31, 2014.
9. Income Taxes
A provision for income taxes of $9.4 million, $2.6 million and $0.1 million has been recognized for the years ended December 31, 2014,
2013 and 2012, respectively, related primarily to our subsidiaries located outside of the United States. Our loss before provision for income taxes
for the years ended December 31, 2014, 2013 and 2012 were as follows (in thousands):
86
●
1/4th of the shares subject to the options are scheduled to vest upon completion of the first Model X Production Vehicle;
1
● 1/4th of the shares subject to the options are scheduled to vest upon achieving aggregate vehicle production of 100,000 vehicles in a
trailing 12
-
month period;
1
●
1/4th of the shares subject to the options are scheduled to vest upon completion of the first Model 3 Production Vehicle; and
1
● 1/4th of the shares subject to the options are scheduled to vest upon achievement of annualized gross margin of greater than 30.0%
in any three years.
1
●
Completion of the first Model X Production Vehicle.
1
Year Ended December 31,
2014
2013
2012
Cost of sales
$
17,454
$
9,071
$
2,194
Research and development
62,601
35,494
26,580
Selling, general and administrative
76,441
39,090
21,371
Total
$
156,496
$
83,655
$
50,145
Year Ended December 31,
2014
2013
2012
Domestic
$
60,451
$
75,279
$
396,549
International
224,185
(3,853
)
(472
)
Loss before income taxes
$
284,636
$
71,426
$
396,077