Thrifty Car Rental 2011 Annual Report Download - page 77

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were zero as the Company has not paid cash dividends since completion of its initial public
offering. The assumptions used to calculate compensation expense relating to the stock option
awards granted during 2009 were as follows: weighted-average expected life of the awards of
five years, expected price volatility factor of 80.24%, risk-free interest rate of 2.36% and no
dividend payments. The weighted average grant-date fair value of options issued in 2009 was
$4.44. The options issued in May 2009 vest in installments over three years with 20%
exercisable in each of 2010 and 2011 and the remaining 60% exercisable in 2012. The total
fair value of options vested during 2011, 2010 and 2009 was $4.0 million, $0.9 million and $0.2
million, respectively. Unrecognized expense remaining for the options at December 31, 2011,
was $0.2 million and will be recognized through April 2012.
The following table sets forth the non-qualified option rights activity under the LTIP for the
period indicated:
Weighted
Weighted
A
verage Aggregate
Number o
f
A
verage Remaining Intrinsic
Shares Exercise Contractual
V
alue
(In Thousands) Price Term (In Thousands)
Outstanding at January 1, 2011 2,277 5.73$ 7.61 94,545$
Granted - -
Exercised (672) 7.10
Canceled (Forfeited/Expired) (30) 7.62
Outstanding at December 31, 2011 1,575 5.11$ 6.89 102,579$
Fully vested and exercisable options at:
December 31, 2011 917 5.46$ 6.66 59,398$
Options expected to vest in the future at:
December 31, 2011 658 4.63$ 7.23 43,181$
The total intrinsic value of options exercised during 2011, 2010 and 2009 was $38.1 million,
$3.8 million, and $0.6 million, respectively. Total cash received by the Company for non-
qualified option rights exercised during 2011, 2010 and 2009 totaled $4.8 million, $3.0 million
and $2.3 million, respectively.
Performance Shares – Performance share awards, which may take the form of performance
shares or performance units, are granted to Company officers and certain key employees. The
maximum amount of performance share awards that may be granted under the LTIP during any
year to any participant is 160,000 common shares. Values of the performance shares earned
are recognized as compensation expense over the period the shares are earned.
In December 2011, a target number of performance units was granted with a grant-date fair
value of $69.58. The grant-date fair value for the awards was based on the closing market
price of the Company’s common shares on the date of grant. These performance units, which
will settle in Company shares, will vest over a three-year requisite service period following the
grant date with 25% vesting on December 31, 2013 and the remaining 75% vesting on
December 31, 2014. The number of performance units ultimately earned will depend upon the
level of corporate performance against a pre-established target in 2012. In December 2010, a
target number of performance units was granted with a grant-date fair value of $47.13. The
grant-date fair value for the awards was based on the closing market price of the Company’s
common shares on the date of grant. These performance units, which will settle in Company
shares, will vest over a three-year requisite service period following the grant date with 25%
vesting on December 31, 2012 and the remaining 75% vesting on December 31, 2013. Based
upon the level of corporate performance against a pre-established target in 2011,
approximately 122,000 performance units were earned, subject to vesting requirements. No
awards were granted in 2009.