XM Radio 2013 Annual Report Download - page 122

Download and view the complete annual report

Please find page 122 of the 2013 XM Radio 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 136

  • 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

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollar amounts in thousands, unless otherwise stated)
Other Plans
We maintain four other share-based benefit plans — the XM 2007 Stock Incentive Plan, the Amended and
Restated Sirius Satellite Radio 2003 Long-Term Stock Incentive Plan, the XM 1998 Shares Award Plan and the
XM Talent Option Plan. No further awards may be made under these plans and all outstanding awards are fully
vested.
The following table summarizes the weighted-average assumptions used to compute the fair value of
options granted to employees and members of our board of directors:
For the Years Ended December 31,
2013 2012 2011
Risk-free interest rate ............................ 1.4% 0.8% 1.1%
Expected life of options — years .................. 4.73 5.06 5.27
Expected stock price volatility .................... 47% 49% 68%
Expected dividend yield ......................... 0% 0% 0%
We do not intend to pay regular dividends on our common stock. Accordingly, the dividend yield
percentage used in the Black-Scholes-Merton option value is zero for all periods.
There were no options granted to third parties, other than non-employee members of our board of directors,
during the years ended December 31, 2013, 2012 and 2011.
The following table summarizes stock option activity under our share-based plans for the years ended
December 31, 2013, 2012 and 2011 (options in thousands):
Options
Weighted-
Average
Exercise
Price (1)
Weighted-
Average
Remaining
Contractual
Term
(Years)
Aggregate
Intrinsic
Value
Outstanding at the beginning of January 1, 2011 ...... 401,870 $1.32
Granted .................................... 77,450 $1.80
Exercised ................................... (13,300) $0.87
Forfeited, cancelled or expired .................. (26,440) $4.15
Outstanding as of December 31, 2011 .............. 439,580 $1.25
Granted .................................... 58,626 $2.53
Exercised ................................... (214,199) $0.59
Forfeited, cancelled or expired .................. (9,495) $3.09
Outstanding as of December 31, 2012 .............. 274,512 $1.92
Granted .................................... 57,228 $3.59
Exercised ................................... (61,056) $1.31
Forfeited, cancelled or expired .................. (6,445) $2.02
Outstanding as of December 31, 2013 .............. 264,239 $2.42 7.12 $327,398
Exercisable as of December 31, 2013 ............... 114,278 $2.26 5.29 $179,549
(1) The weighted-average exercise price for options outstanding as of December 28, 2012 were adjusted in 2012 to reflect
the reduction to the exercise price related to the December 2012 special cash dividend.
F-40