XML 59 R44.htm IDEA: XBRL DOCUMENT v3.6.0.2
Stock-Based Compensation and Other Compensation (Tables)
 12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Restricted and Conditional Award Activity
Nonvested RSAs, RSUs, and PSUs at December 31, 2016 and changes during the years ended December 31, 2016, 2015, and 2014 were as follows:
 
RSA and RSU Awards
 
PSU Awards
 
Shares
 
Weighted-Average
Grant Date
Fair Value
 
Shares
 
Weighted-Average
Grant Date
Fair Value
Nonvested at January 1, 2014
519,608

 
$
45.19

 
1,220,720

 
$
28.28

Granted
188,619

 
61.08

 
89,653

 
76.05

Vested (a)
(264,724
)
 
43.35

 
(881,388
)
 
51.00

Forfeited
(1,001
)
 
59.45

 
(78
)
 
54.31

Adjustment (b)
—

 
—

 
448,734

 
55.91

Nonvested at December 31, 2014
442,502

 
53.03

 
877,641

 
32.06

Granted
189,893

 
69.92

 
75,277

 
83.68

Vested (a)
(264,628
)
 
49.69

 
(792,465
)
 
56.77

Forfeited
(10,996
)
 
66.46

 
—

 
—

Adjustment (b)
—

 
—

 
179,905

 
49.70

Nonvested at December 31, 2015
356,771

 
64.09

 
340,358

 
52.26

Granted (c)
277,836

 
58.27

 
200,005

 
73.18

Vested (a)
(217,617
)
 
61.32

 
(180,723
)
 
80.21

Forfeited
(60,125
)
 
61.81

 
(51,657
)
 
75.49

Adjustment (b)
—

 
—

 
2,035

 
72.22

Nonvested at December 31, 2016 (d)
356,865

 
$
61.63

 
310,018

 
$
73.80

__________
(a)
The total fair value of shares vested during the years ended December 31, 2016, 2015, and 2014 was $27.8 million, $58.1 million, and $56.4 million, respectively. Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date, pursuant to previously made deferral elections. At December 31, 2016 and 2015, we had an obligation to issue 1,217,274 and 1,395,907 shares, respectively, of our common stock underlying such deferred awards, which is recorded within W. P. Carey stockholders’ equity as a Deferred compensation obligation of $50.2 million and $56.0 million, respectively.
(b)
Vesting and payment of the PSUs is conditioned upon certain company and market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. As a result, we recorded adjustments to reflect the number of shares expected to be issued when the PSUs vest.
(c)
The grant date fair values of RSAs and RSUs reflect our stock price on the date of grant on a one-for-one basis. The grant date fair value of PSUs was determined utilizing a Monte Carlo simulation model to generate a range of possible future stock prices for both us and the plan defined peer index over the three-year performance period. To estimate the fair value of PSUs granted during the year ended December 31, 2016, we used risk-free interest rates ranging from 0.9% - 1.1% and expected volatility rates ranging from 18.2% - 19.1% (the plan defined peer index assumes a range of 15.0% - 15.6%) and assumed a dividend yield of zero.
(d)
At December 31, 2016, total unrecognized compensation expense related to these awards was approximately $19.6 million, with an aggregate weighted-average remaining term of less than 2 years
Schedule of Share Based Compensation Stock Option Activity
Option activity and changes for all periods presented were as follows:
 
Year Ended December 31, 2016
 
Shares
 
Weighted-Average
Exercise Price
 
Weighted-Average
Remaining
Contractual
Term (in Years)
 
Aggregate
Intrinsic Value
Outstanding – beginning of year
258,787

 
$
31.10

 
 
 
 
Exercised
(113,002
)
 
28.34

 
 
 
 
Canceled / Expired
(752
)
 
28.42

 
 
 
 
Outstanding – end of year
145,033

 
$
33.27

 
0.30
 
$
3,745,163

Vested and expected to vest – end of year
145,033

 
$
33.27

 
0.30
 
$
3,745,163

Exercisable – end of year
145,033

 
$
33.27

 
0.30
 
$
3,745,163

 
 
Years Ended December 31,
 
2015
 
2014
 
Shares
 
Weighted-Average
Exercise Price
 
Weighted-Average
Remaining
Contractual
Term (in Years)
 
Shares
 
Weighted-Average
Exercise Price
 
Weighted-Average
Remaining
Contractual
Term (in Years)
Outstanding – beginning of year
475,765

 
$
29.95

 
 
 
619,601

 
$
30.30

 
 
Exercised
(213,479
)
 
28.57

 
 
 
(140,718
)
 
31.41

 
 
Canceled / Expired
(3,499
)
 
28.71

 
 
 
(3,118
)
 
32.99

 
 
Outstanding – end of year
258,787

 
$
31.10

 
1.06
 
475,765

 
$
29.95

 
1.75
Exercisable – end of year
236,112

 
$
30.99

 
 
 
421,656

 
$
29.75