Washington Post 2015 Annual Report Download - page 117

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Activity related to stock awards under these incentive compensation plans for the year ended December 31, 2015
was as follows:
Number
of Shares
Average
Grant-
Date
Fair
Value
Beginning of year, unvested ......................... 117,111 $463.64
Awarded ........................................ 47,245 935.28
Vested .......................................... (45,638) 684.97
Forfeited ........................................ (37,243) 491.42
End of Year, Unvested ............................ 81,475 637.70
In connection with the spin-off of Cable ONE, the Company modified the terms of 10,830 restricted stock awards
in the second quarter of 2015 affecting 21 Cable ONE employees. The modification resulted in the acceleration
of the vesting period of 6,324 restricted stock awards and the forfeiture of 4,506 restricted stock awards, the
effects of which are reflected in the above activity. The Company recorded incremental stock compensation
expense, net of forfeitures, in the second quarter of 2015 amounting to $3.7 million, which is reflected in
discontinued operations in the Company’s consolidated financial statements. The spin-off also resulted in a
modification of some of the Company’s outstanding restricted stock awards. The holders of restricted stock
awards received Cable ONE restricted common stock, on a pro rata basis, as part of the distribution. The
modification of the restricted stock awards resulted in an estimated incremental stock compensation expense of
$3.0 million that will be recognized over the remaining service periods of the unvested restricted stock awards
through the end of 2018.
In the fourth quarter of 2015, the Company also modified the terms of an additional 9,800 restricted stock awards
affecting one now former employee. The modification resulted in the acceleration of the vesting period of 9,412
restricted stock awards and the forfeiture of 388 restricted stock awards, the effects of which are reflected in the
above activity. As a result, the Company recorded incremental stock compensation expense, net of forfeitures, of
$6.0 million.
In connection with the sale of the Publishing Subsidiaries in 2013, the Company modified the terms of 86,824
share awards affecting 102 employees. The modification resulted in the acceleration of the vesting period for
45,374 share awards, the elimination of a market condition and vesting terms of 15,000 share awards, and the
forfeiture of 26,450 share awards. The Company also offered some employees with 26,124 share awards the
option to settle their awards in cash, resulting in a modification of these awards from equity awards to liability
awards. The Company paid employees $13.1 million for the settlement of these liability awards. The Company
recorded incremental stock compensation expense, net of forfeitures, amounting to $19.9 million, which is
included in income from discontinued operations, net of tax, in the Consolidated Statement of Operations for
2013.
For the share awards outstanding at December 31, 2015, the aforementioned restriction will lapse in 2016 for
10,675 shares, in 2017 for 29,850 shares, in 2018 for 14,450 shares and in 2019 for 26,500 shares. Also, in early
2016, the Company issued stock awards of 200 shares. Stock-based compensation costs resulting from Company
stock awards were $25.3 million, $15.4 million and $35.2 million in 2015, 2014 and 2013, respectively.
As of December 31, 2015, there was $29.4 million of total unrecognized compensation expense related to these
awards. That cost is expected to be recognized on a straight-line basis over a weighted average period of 1.8
years.
2015 FORM 10-K 102