Annual report pursuant to Section 13 and 15(d)

Stock-based and Long-Term Compensation

v2.4.0.8
Stock-based and Long-Term Compensation
12 Months Ended
Dec. 31, 2013
Stock-based and Long-Term Compensation  
Stock-based and Long-Term Compensation

(14)  Stock-based and Long-Term Compensation

 

During 2013 and 2012, certain employees of Monitronics were granted restricted shares of Ascent Capital Series A common stock and options to purchase shares of Ascent Capital Series A common stock under Ascent Capital’s 2008 Incentive Plan.  The restricted shares of Ascent Capital Series A common stock vest over periods ranging from four to five years. The fair values for the restricted stock awards were the closing prices of the Ascent Capital Series A common stock on the applicable dates of grant.

 

The fair value of each option granted is estimated on the grant date using the Black-Scholes option pricing method. The weighted averages of the assumptions used in the model are as follows:

 

 

 

Year Ended December 31,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

Risk-free interest rate

 

 

0.89

%

Estimated life in years

 

 

4.76

 

Dividend yield

 

 

0

%

Volatility

 

 

43

%

 

The following table presents the number and weighted average exercise price (“WAEP”) of options to purchase Ascent Capital Series A common stock granted to certain Monitronics employees:

 

 

 

Series A

 

 

 

 

 

common stock

 

WAEP

 

 

 

 

 

 

 

Outstanding at January 1, 2013

 

250,447

 

$

49.38

 

Granted

 

 

 

Exercised

 

3,605

 

48.93

 

Forfeited

 

(16,875

)

49.37

 

Outstanding at December 31, 2013

 

229,967

 

49.39

 

 

 

 

 

 

 

Exercisable at December 31, 2013

 

34,042

 

$

48.41

 

 

The intrinsic value of outstanding stock option awards and exercisable stock option awards at December 31, 2013 was $8,319,000 and $1,237,000, respectively.  The weighted average remaining contractual life of both outstanding and exercisable awards at December 31, 2013 was 4.5 years and 4.25 years, respectively.

 

The following table presents the number and weighted average fair value (“WAFV”) of unvested restricted stock awards granted to certain Monitronics employees:

 

 

 

Series A

 

 

 

 

 

common stock

 

WAFV

 

 

 

 

 

 

 

Outstanding at January 1, 2013

 

77,689

 

$

43.91

 

Granted

 

9,706

 

86.53

 

Vested

 

(15,410

)

81.17

 

Cancelled

 

(5,308

)

45.74

 

Outstanding at December 31, 2013

 

66,677

 

$

48.36

 

 

As of December 31, 2013, the total compensation cost related to unvested equity awards was approximately $4,162,000.  Such amount will be recognized in the consolidated statements of operations over a period of approximately 4 years.