Washington Post 2015 Annual Report Download - page 119

Download and view the complete annual report

Please find page 119 of the 2015 Washington Post annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Information related to stock options outstanding and exercisable at December 31, 2015, is as follows:
Options Outstanding Options Exercisable
Range of
Exercise
Prices
Shares
Outstanding
at
12/31/2015
Weighted
Average
Remaining
Contractual
Life (years)
Weighted
Average
Exercise
Price
Shares
Exercisable
at
12/31/2015
Weighted
Average
Remaining
Contractual
Life (years)
Weighted
Average
Exercise
Price
$239–284 9,374 4.6 $255.69 8,602 4.3 $256.69
325 77,258 5.1 325.26 77,258 5.1 325.26
422 3,090 2.4 421.91 3,090 2.4 421.91
719 77,258 8.8 719.15 12,876 8.8 719.15
805–872 24,742 9.9 866.58 — — —
191,722 7.2 552.00 101,826 5.5 372.21
At December 31, 2015, the intrinsic value for all options outstanding, exercisable and unvested was $14.7
million, $14.5 million and $0.2 million, respectively. The intrinsic value of a stock option is the amount by which
the market value of the underlying stock exceeds the exercise price of the option. The market value of the
Company’s stock was $484.97 at December 31, 2015. At December 31, 2015, there were 89,896 unvested
options related to this plan with an average exercise price of $755.65 and a weighted average remaining
contractual term of 9.1 years. At December 31, 2014, there were 81,500 unvested options with an average
exercise price of $863.72 and a weighted average remaining contractual term of 8.9 years.
As of December 31, 2015, total unrecognized stock-based compensation expense related to stock options was
$10.7 million, which is expected to be recognized on a straight-line basis over a weighted average period of
approximately 5.0 years. There were 40,527 options exercised during 2015. The total intrinsic value of options
exercised during 2015 was $19.5 million; a tax benefit from these stock option exercises of $7.8 million was
realized. There were 19,125 options exercised during 2014. The total intrinsic value of options exercised during
2014 was $6.7 million; a tax benefit from these stock option exercises of $2.7 million was realized. There were
14,500 options exercised during 2013. The total intrinsic value of options exercised during 2013 was $3.2
million; a tax benefit from these option exercises of $1.3 million was realized.
During 2015 and 2014, the Company granted 24,742 and 50,000 options at an exercise price above the fair
market value of its common stock at the date of grant, respectively. All other options granted during 2015 and
2014 were at an exercise price equal to the fair market value of the Company’s common stock at the date of
grant. All options granted during 2013 were at an exercise price equal to the fair market value of the Company’s
common stock at the date of grant. The weighted average grant-date fair value of options granted during 2015,
2014 and 2013 was $155.00, $178.95 and $91.74, respectively.
The fair value of options at date of grant was estimated using the Black-Scholes method utilizing the following
assumptions:
2015 2014 2013
Expected life (years) ................ 7–8 7–8 7
Interest rate .......................
1.88%–2.17%
2.15%–2.45% 1.31%
Volatility .........................
31.59%–32.69%
30.75%–32.10% 31.80%
Dividend yield .....................
0.81%–1.18%
1.30%–1.54% 2.63%
2015 FORM 10-K 104