Annual report pursuant to Section 13 and 15(d)

Stock-based and Long-Term Compensation

v2.4.1.9
Stock-based and Long-Term Compensation
12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based and Long-Term Compensation
Stock-based and Long-Term Compensation
 
During 2014, 2013 and 2012, certain employees of Monitronics were granted restricted 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 to the Company's employees was estimated on the grant date using the Black-Scholes option pricing method. There were no options granted in 2014 and 2013. The weighted average assumptions used in the model for 2012 grants are as follows:
 
 
2012
Risk-free interest rate
 
0.89
%
Estimated life in years
 
4.76

Dividend yield
 
%
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, 2014
 
229,967

 
$
49.39

Granted
 

 

Exercised
 
(4,557
)
 
50.06

Forfeited
 
(3,000
)
 
50.47

Outstanding at December 31, 2014
 
222,410

 
49.36

Exercisable at December 31, 2014
 
91,645

 
$
48.49


 
The intrinsic value of outstanding stock option awards and exercisable stock option awards at December 31, 2014 was $890,000 and $407,000, respectively.  The weighted average remaining contractual life of outstanding and exercisable awards at December 31, 2014 was 3.5 years and 3.3 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, 2014
 
66,677

 
$
48.36

Granted
 
17,639

 
63.99

Vested
 
(21,866
)
 
48.81

Canceled
 
(900
)
 
50.47

Outstanding at December 31, 2014
 
61,550

 
$
52.64


 
As of December 31, 2014, the total compensation cost related to unvested equity awards was approximately $3,236,000.  Such amount will be recognized in the consolidated statements of operations over a period of approximately 4 years.