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SEC Filings

10-K
CINEMARK HOLDINGS, INC. filed this Form 10-K on 02/23/2018
Entire Document
 

CINEMARK HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

Below is a table summarizing the potential number of units that could vest under restricted stock unit awards granted during the years ended December 31, 2015, 2016 and 2017 at each of the three levels of financial performance (excluding forfeitures):

 

 

 

Granted During the Year Ended December 31,

 

 

 

2015

 

 

2016

 

 

2017

 

 

 

Number of

 

 

Value at

 

 

Number of

 

 

Value at

 

 

Number of

 

 

Value at

 

 

 

Units

 

 

Grant(1)

 

 

Units

 

 

Grant(1)

 

 

Units

 

 

Grant(1)

 

at threshold IRR

 

 

47,640

 

 

$

2,057

 

 

 

84,554

 

 

$

2,522

 

 

 

58,545

 

 

$

2,481

 

at target IRR

 

 

95,282

 

 

$

4,115

 

 

 

169,107

 

 

$

5,044

 

 

 

117,089

 

 

$

4,961

 

at maximum IRR

 

 

142,917

 

 

$

6,173

 

 

 

253,661

 

 

$

7,568

 

 

 

175,634

 

 

$

7,442

 

 

(1)

The grant date fair values for units issued during the years ended December 31, 2015, 2016, and 2017 were $43.19, $29.83 and $42.37, respectively.  

Below is a summary of activity for restricted stock unit awards for the periods indicated:

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2016

 

 

2017

 

Number of restricted stock unit awards that vested during the period

 

 

123,769

 

 

 

213,984

 

 

 

97,115

 

Fair value of restricted stock unit awards that vested during the period

 

$

5,483

 

 

$

7,260

 

 

$

4,155

 

Accumulated dividends paid upon vesting of restricted stock unit awards

 

$

442

 

 

$

662

 

 

$

558

 

Income tax benefit recognized upon vesting of restricted stock unit awards

 

$

2,303

 

 

$

3,049

 

 

$

1,745

 

Compensation expense recognized during the period

 

$

6,158

 

 

$

5,144

 

 

$

4,297

 

 

During the year ended December 31, 2015, the Compensation Committee of the Board of Directors approved a modification to each of the 2013 and 2014 restricted stock unit grants.  The modifications resulted in a cap on the foreign currency exchange rate devaluation impact to be used in calculating the IRR for the respective measurement periods.  The Company revalued each of the grants based on the Company’s stock price at the date of modification, which was $33.02. The modifications resulted in incremental compensation expense of approximately $2,460 for the year ended December 31, 2015.  

During the year ended December 31, 2016, the Compensation Committee of the Board of Directors approved a modification to the 2015 restricted stock unit grants. The modification resulted in a cap on the foreign currency exchange rate devaluation impact to be used in calculating the IRR for the respective measurement periods.  The Company revalued each of the grants based on the Company’s stock price at the date of modification, which was $37.98. The modifications resulted in incremental compensation expense of approximately $562 for the year ended December 31, 2016.  

As of December 31, 2017, the Company had restricted stock units outstanding that represented a total 628,189 hypothetical shares of common stock, net of actual cumulative forfeitures of 7,407 units, assuming the maximum IRR is achieved for all of the outstanding restricted stock unit awards.

As of December 31, 2017, the remaining unrecognized compensation expense related to the outstanding restricted stock unit awards was $6,820, which reflects the maximum IRR level that was achieved for the 2014 and 2015 grants, an IRR level of 8.0% that is estimated for the 2016 grants and an IRR level of 9.5% that is estimated for the 2017 grants. The weighted average period over which this remaining compensation expense will be recognized is approximately two years.

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