Print Page  |  Close Window

SEC Filings

10-K
CINEMARK HOLDINGS, INC. filed this Form 10-K on 02/27/2015
Entire Document
 


Table of Contents

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

Restricted Stock —   Below is a summary of restricted stock activity for the years ended December 31, 2012, 2013 and 2014:

 

     Year Ended
December 31, 2012
     Year Ended
December 31, 2013
     Year Ended
December 31, 2014
 
     Shares of
Restricted
Stock
    Weighted
Average
Grant  Date
Fair Value
     Shares of
Restricted
Stock
    Weighted
Average
Grant  Date
Fair Value
     Shares of
Restricted
Stock
    Weighted
Average
Grant Date
Fair Value
 

Outstanding at January 1

     1,384,390      $ 16.85         1,534,163      $ 18.85         1,260,913      $ 21.86   

Granted

     653,229      $ 21.70         271,532      $ 30.09         269,774      $ 28.93   

Vested

     (489,033   $ 17.00         (522,129   $ 17.27         (625,843   $ 20.53   

Forfeited

     (14,423   $ 18.58         (22,653   $ 22.92         (25,947   $ 22.94   
  

 

 

      

 

 

      

 

 

   

Outstanding at December 31

     1,534,163      $ 18.85         1,260,913      $ 21.86         878,897      $ 24.92   
  

 

 

      

 

 

      

 

 

   

During the year ended December 31, 2014, the Company granted 269,774 shares of restricted stock to directors and employees of the Company. The fair value of the restricted stock granted was determined based on the market value of the Company’s common stock on the date of grant, which ranged from $28.54 to $35.49 per share. The Company assumed forfeiture rates ranging from 0% to 5% for the restricted stock awards. Restricted stock granted to directors vests over a one-year period. Certain of the restricted stock granted to employees vests over three years based on continued service and certain of the restricted stock granted to employees vests over four years based on continued service. The recipients of restricted stock are entitled to receive dividends and to vote their respective shares, however, the sale and transfer of the restricted shares is prohibited during the restriction period.

Below is a summary of restricted stock award activity recorded for the periods indicated:

 

     Year Ended December 31,  
     2012      2013      2014  

Compensation expense recognized during the period

   $ 10,637       $ 12,738       $ 9,534   

Fair value of restricted shares that vested during the period

   $ 9,702       $ 10,161       $ 18,773   

Income tax deduction upon vesting of restricted stock awards

   $ 4,075       $ 4,268       $ 5,625   

As of December 31, 2014, the remaining unrecognized compensation expense related to these restricted stock awards was approximately $12,309. The weighted average period over which this remaining compensation expense will be recognized is approximately two years.

Restricted Stock Units —   During the years ended December 31, 2012, 2013 and 2014, the Company granted restricted stock units representing 152,955, 115,107 and 197,515 hypothetical shares of common stock, respectively, to employees. The restricted stock units vest based on a combination of financial performance factors and continued service. The financial performance factors are based on an implied equity value concept that determines an internal rate of return (“IRR”) for a measurement period, as defined in the award agreement, based on a formula utilizing a multiple of Adjusted EBITDA subject to certain specified adjustments (as defined in the restricted stock unit award agreement). The measurement period for the restricted stock unit awards granted during the years ended December 31, 2012 and 2013 is a three year period and the measurement period for the restricted stock unit awards granted during the year ended December 31, 2014 is a two year period. The financial performance factors for the restricted stock units have a threshold, target and maximum level of payment opportunity and vest on a prorata basis according to the IRR achieved by the Company during the performance period. If the IRR for the defined measurement period is at least 8.5%, which is the threshold, at

 

F-36