Annual report pursuant to Section 13 and 15(d)

Stock Compensation and Long Term Incentive Plan (Tables)

v2.4.0.8
Stock Compensation and Long Term Incentive Plan (Tables)
 12 Months Ended
Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Share-based Compensation, Historical Award Activity
historical awards granted in 2013, 2012 and 2011 are summarized as follows:

 
Options
Granted
 
Weighted
Average Grant-Date Fair Value
2013 Awards:
 
 
 
Stock options - Starz
7,443,494
 
$
7.84

Restricted stock - Starz
574,548
 
$
22.85

2012 Awards:
 
 
 
Stock options - LMCA
688,000
 
$
40.12

Stock options - LMCA issued in the Exchange
482,535
 
$
42.36

Restricted stock - LMCA
58,110
 
$
105.56

2011 Awards:
 
 
 
Stock options - LMCA
100,000
 
$
32.60

Stock options - Series A Liberty Starz Common Stock
496,000
 
$
21.36

Restricted stock - Series A Liberty Starz Common Stock
11,655
 
$
77.52


Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
e assumptions used are as follows:

 
2013
 
2012
 
2011
Expected term
4.6 to 6.9
 
4.5 to 7.08
 
4.4
Expected volatility
35.9% to 41.4%
 
37.5% to 54.2%
 
31.9% to 54.2%
Risk-free rate of return
0.7% to 1.4%
 
0.5% to 1.0%
 
0.7% to 1.9%

Schedule of Share-based Compensation, Stock Options, Activity
e following table presents the number and weighted-average exercise price (“WAEP”) of stock options to purchase Starz common stock:
 
Options
 
WAEP
Outstanding at December 31, 2012
1,615,711

 
$
93.14

LMC Spin-Off adjustment to existing stock options
7,589,815

 
*

LMC Spin-Off adjustment for Liberty Media employees
3,527,791

 
$
12.78

Granted
7,443,494

 
$
20.54

Exercised
(1,138,030
)
 
$
11.24

Forfeited
(273,644
)
 
$
11.10

Expired/cancelled
—

 
$
—

Outstanding at December 31, 2013
18,765,137

 
$
15.41

 
 
 
 
Exercisable at December 31, 2013
6,153,111

 
$
12.79

 
 
 
 
* The adjustment to the existing stock options from the LMC Spin-Off increased the number of existing stock options and reduced the WAEP. After giving effect to the LMC Spin-Off, the WAEP for the existing stock options was $11.62.
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]
following table presents the number and weighted-average grant date fair value of restricted stock grants:
 
Restricted Stock
 
Weighted
Average Grant-Date Fair Value
Outstanding at December 31, 2012*
109,023

 
$
95.48

LMC Spin-Off adjustment for Liberty Media employees
1,499,906

 
$
12.40

Granted
574,548

 
$
22.85

Vested
(736,815
)
 
$
11.91

Forfeited
(7,753
)
 
$
16.28

Outstanding at December 31, 2013
1,438,909

 
$
16.52

 
 
 
 
* In connection with the LMC Spin-Off, approximately 12% of the original grant-date fair value was allocated to the Starz restricted shares.

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