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SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 11/05/2015
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Table of Contents

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

8. Treasury Stock and Share Based Awards

Treasury Stock — Treasury stock represents shares of common stock repurchased or withheld by the Company and not yet retired. The Company has applied the cost method in recording its treasury shares. Below is a summary of the Company’s treasury stock activity for the nine months ended September 30, 2015:

 

     Number of
Treasury
Shares
     Cost  

Balance at January 1, 2015

     4,057,135       $ 61,807   

Restricted stock withholdings (1)

     108,472         4,770   

Restricted stock forfeitures

     14,158         —     
  

 

 

    

 

 

 

Balance at September 30, 2015

     4,179,765       $ 66,577   
  

 

 

    

 

 

 

 

(1)  The Company withheld restricted shares as a result of the election by certain employees to satisfy their tax liabilities upon vesting in restricted stock and restricted stock units. The Company determined the number of shares to be withheld based upon market values ranging from $35.44 to $44.67 per share.

As of September 30, 2015, the Company had no plans to retire any shares of treasury stock.

Restricted Stock – During the nine months ended September 30, 2015, the Company granted 226,212 shares of restricted stock to directors and employees. The fair value of the restricted stock granted was determined based on the market value of the Company’s common stock on the dates of grant, which ranged from $40.75 to $43.28 per share. The Company assumed forfeiture rates ranging from 0% to 10% for the restricted stock awards. Restricted stock granted to the Company’s directors vests over one year. Restricted stock granted to employees vests over service periods that range from one year to four years. 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 activity for the nine months ended September 30, 2015:

 

     Shares of
Restricted
Stock
     Weighted
Average
Grant Date

Fair Value
 

Outstanding at January 1, 2015

     878,897       $ 24.92   

Granted

     226,212       $ 42.79   

Vested

     (328,532    $ 23.71   

Forfeited

     (14,158    $ 25.93   
  

 

 

    

Outstanding at September 30, 2015

     762,419       $ 30.74   
  

 

 

    

Unvested restricted stock at September 30, 2015

     762,419       $ 30.74   
  

 

 

    

 

     Nine Months Ended
September 30,
 
     2015      2014  

Compensation expense recognized during the period

   $ 7,142       $ 7,264   

Fair value of restricted shares that vested during the period

   $ 10,291       $ 18,571   

Income tax deduction upon vesting of restricted stock awards

   $ 3,823       $ 7,109   

As of September 30, 2015, the estimated remaining unrecognized compensation expense related to restricted stock awards was $14,356 and the weighted average period over which this remaining compensation expense will be recognized is approximately two years.

 

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