Share-Based Compensation

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation and Employee Benefit Plans

Share-Based Compensation

We have a stock award and incentive plan to attract and retain officers, key employees and independent directors. Our plan reserves for issuance a maximum of 4.4 million shares, which may be in the form of incentive stock options, non-qualified stock options and restricted stock, or other types of awards as authorized under our plan. At December 31, 2014, there were approximately 0.8 million shares available to be granted under our plan, all of which may be issued in the form of stock options, and 0.5 million of which may be issued in the form of restricted stock. Our plan is administered by the Compensation and Human Resources Committee of Aimco’s Board of Directors. In the case of stock options, the exercise price of the options granted may not be less than the fair market value of a share of Common Stock at the date of grant. The term of the options is generally 10 years from the date of grant and the options typically vest over a period of four years from the date of grant. Restricted stock awards typically vest over a period of four years.

The following table summarizes activity for our outstanding stock options for the years ended December 31, 2014, 2013 and 2012 (numbers of options in thousands):

	2014				2013				2012
	Number of Options		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price
Outstanding at beginning of year	2,991		$	28.48	3,045		$	28.39	6,809		$	26.47
Exercised	(1,347	)	27.97		(44	)	22.52		(2,253	)	21.75
Forfeited	(4	)	25.45		(10	)	27.82		(1,511	)	29.66
Outstanding at end of year	1,640		$	28.91	2,991		$	28.48	3,045		$	28.39
Exercisable at end of year	1,640		$	28.91	2,991		$	28.48	2,841		$	29.79

The intrinsic value of a stock option represents the amount by which the current price of the underlying stock exceeds the exercise price of the option. Options outstanding and exercisable at December 31, 2014, had an aggregate intrinsic value of $15.3 million and a weighted average remaining contractual term of 3.0 years. The intrinsic value of stock options exercised during the years ended December 31, 2014, 2013 and 2012, was $10.0 million, $0.3 million and $10.9 million respectively.

The following table summarizes activity for restricted stock awards for the years ended December 31, 2014, 2013 and 2012 (numbers of shares in thousands):

	2014				2013				2012
	Number of Shares		Weighted Average Grant-Date Fair Value		Number of Shares		Weighted Average Grant-Date Fair Value		Number of Shares		Weighted Average Grant-Date Fair Value
Unvested at beginning of year	575		$	25.28	526		$	22.69	463		$	21.53
Granted	196		26.69		253		27.86		241		24.31
Vested	(238	)	24.07		(204	)	21.81		(178	)	21.86
Forfeited	(20	)	26.26		—		—		—		—
Unvested at end of year	513		$	26.34	575		$	25.28	526		$	22.69

The aggregate fair value of shares that vested during the years ended December 31, 2014, 2013 and 2012 was $6.7 million, $5.7 million and $4.4 million, respectively.

Total compensation cost recognized for restricted stock and stock option awards was $6.1 million, $5.9 million and $5.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. Of these amounts, $0.3 million, $0.3 million and $0.4 million, respectively, were capitalized. At December 31, 2014, total unvested compensation cost not yet recognized was $7.8 million. We expect to recognize this compensation over a weighted average period of approximately 1.7 years.