FelCor Stock Based Compensation Plans

12 Months Ended

Dec. 31, 2013

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

FelCor Stock Based Compensation Plans

FelCor Stock Based Compensation Plans

FelCor sponsors one restricted stock and stock option plan, or the Plan. FelCor is authorized to issue up to 6,000,000 shares of common stock under the Plan pursuant to awards granted in the form of incentive stock options, non-qualified stock options, and restricted stock. Stock grants vest either over three to five years in equal annual installments or over a four year schedule, subject to time-based and performance-based vesting. There were 2,073,587 shares available for grant under the Plan at December 31, 2013.

FelCor Restricted Stock and Restricted Stock Units

A summary of the status of FelCor’s restricted stock and restricted stock unit grants as of December 31, 2013, 2012 and 2011, and the changes during these years is presented below:

	2013				2012				2011
	Shares		Weighted Average Fair Market Value at Grant		Shares		Weighted Average Fair Market Value at Grant		Shares		Weighted Average Fair Market Value at Grant
Outstanding at beginning of the year	4,239,825		$	10.45	4,290,318		$	10.58	4,200,089		$	10.69
Granted:
With immediate vesting(a)	—		$	—	—		$	—	95,000		$	5.85
With 5-year pro rata vesting	15,000		$	6.13	10,000		$	4.40	—		$	—
With up to 4-year pro rata vesting	1,250,000		$	4.09	—		$	—	—		$	—
Forfeited	—				(60,493	)	$	18.60	(4,771	)	$	12.20
Outstanding at end of year	5,504,825		$	9.00	4,239,825		$	10.45	4,290,318		$	10.58
Vested at end of year	(4,234,825	)	$	10.46	(3,936,492	)	$	10.97	(3,632,564	)	$	11.54
Unvested at end of year	1,270,000		$	4.12	303,333		$	3.71	657,754		$	5.30

(a) Shares awarded to directors.

The unearned compensation cost of FelCor’s granted but unvested restricted stock and units as of December 31, 2013 was $2.6 million. The weighted average period over which this cost is to be amortized is approximately one year.

In February 2013, our executive officers were granted restricted stock units providing them with the potential to earn up to 1,250,000 common shares, collectively, vesting in three increments over four years, based on total stockholder return relative to a group of 10 lodging REIT peers. The fixed cost of these grants is amortized over the vesting period. The February 2013 grant also provides that to the extent any of these executive officers earn more than 250,000 shares upon vesting of this grant, the excess is settled in cash. To the extent there is excess likely to settle in cash, these awards are accounted for as liability awards, the fair value of which is remeasured at the end of each reporting period. The liability accrued for these awards as of December 31, 2013 was $1.0 million. Fair estimates are based on a Monte Carlo simulation.