Annual report pursuant to Section 13 and 15(d)

Stock Compensation and Long Term Incentive Plan (Tables)

v2.4.1.9
Stock Compensation and Long Term Incentive Plan (Tables)
 12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
Stock compensation expense, by expense category, consists of the following (in millions):
 
Years ended December 31,
 
2014
 
2013
 
2012
Programming costs
$
2.4

 
$
1.6

 
$
0.7

Operating expenses
0.3

 
0.2

 
0.1

Selling, general and administrative expenses
27.9

 
32.5

 
19.2

Total stock compensation expense
$
30.6

 
$
34.3

 
$
20.0

Schedule of Share-based Compensation, Historical Award Activity
Awards granted in 2014, 2013 and 2012 are as follows:

 
Options
Granted
 
Weighted
Average Grant-Date Fair Value
2014 Awards:
 
 
 
Stock options - Starz
1,424,612
 
$
10.94

Restricted stock - Starz
148,106
 
$
32.94

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

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

 
2014
 
2013
 
2012
Expected term
4.75
 
4.6 to 6.9
 
4.5 to 7.08
Expected volatility
35.9% to 36.0%
 
35.9% to 41.4%
 
37.5% to 54.2%
Risk-free rate of return
1.5%
 
0.7% to 1.4%
 
0.5% to 1.0%
Schedule of Share-based Compensation, Stock Options, Activity
The 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, 2013
18,765,137

 
$
15.41

Granted
1,424,612

 
$
33.13

Exercised
(2,969,841
)
 
$
12.56

Forfeited
(788,242
)
 
$
16.12

Expired/cancelled
—

 
$
—

Outstanding at December 31, 2014
16,431,666

 
$
17.42

 
 
 
 
Exercisable at December 31, 2014
7,236,584

 
$
13.69

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]
The 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, 2013
1,438,909

 
$
16.52

Granted
148,106

 
$
32.94

Vested
(814,695
)
 
$
15.22

Forfeited
(63,662
)
 
$
21.27

Outstanding at December 31, 2014
708,658

 
$
21.01