Stock-Based Compensation |
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| Share-based Compensation [Abstract] | 听 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation |
(15)听听Stock-Based Compensation Liberty - Incentive Plans Pursuant to the Liberty Interactive 2016 Omnibus Incentive Plan (the 鈥2016 Plan鈥), the Company may grant stock options (鈥淎wards鈥) to be made in respect of a maximum of 39.9 million shares of Series A and Series B QVC Group common stock and Liberty Ventures common stock.听听Awards generally vest over 4-5听years and have a term of 7-10听years. Liberty issues new shares upon exercise of equity awards. In connection with the HSNi acquisition in December 2017 (see note 5), outstanding awards to purchase shares of HSNi common stock (an 鈥淗SN Award鈥) were exchanged for awards to purchase shares of Series A QVC Group common stock (a 鈥淨VCA Award鈥).听听The exercise prices and number of shares subject to the QVCA Award were determined based on (1) the exercise prices and number of shares subject to the HSN Award and (2) the acquisition exchange ratio.听听The exchange of such awards was considered a modification under ASC 805 鈥 Business Combinations.听听A portion of the fair value of the replacement QVCA Awards was attributed to the consideration paid in the acquisition.听听The remaining portion of the fair value will be recognized in the consolidated financial statements over the remaining vesting period of each individual award. In connection with the Expedia Holdings Split-Off in November 2016, the holder of an outstanding award to purchase shares of Liberty Ventures Series A and Series B common stock (a 鈥淟iberty Ventures Award鈥) received an Award to purchase shares of the corresponding series of Expedia Holdings common stock and an adjustment to the exercise price and number of shares subject to the Liberty Ventures Award (as so adjusted, an 鈥淎djusted Liberty Ventures Award鈥).听听Following the Expedia Holdings Split-Off, employees of Liberty hold Awards in both Liberty Ventures common stock and Expedia Holdings common stock.听听The compensation expense relating to employees of Liberty is recorded at Liberty. In connection with the CommerceHub Spin-Off in July 2016, the holder of an outstanding award to purchase shares of Liberty Ventures Series A and Series B common stock (an 鈥淥riginal Liberty Ventures Award鈥) received an adjustment to the exercise price and number of shares subject to the Original Liberty Ventures Award (as so adjusted, an 鈥淎djusted Liberty Ventures Award鈥).听听A holder of an Original Liberty Ventures Award who was a member of the board of directors or an officer of Liberty holding the position of Vice President or above also received an Award to purchase shares of the corresponding series of CommerceHub common stock as well as Series C CommerceHub common stock (in each case, a 鈥淐ommerceHub Award鈥).听听Following the CommerceHub Spin-Off, employees of Liberty may hold Awards in both Liberty Ventures common stock and CommerceHub common stock. The compensation expense relating to employees of Liberty is recorded at Liberty.
Liberty 鈥 Grants The following table presents the number and weighted average grant-date fair value (鈥淕DFV鈥) of options granted by Liberty during the years ended December 31, 2017, 2016 and 2015:
In connection with the Option Exchange (see below), Liberty granted 5.9 million, 946 thousand and 1.1 million options to purchase shares of Series A QVC Group common stock, Series A Liberty Ventures common stock and Series B Liberty Ventures common stock, respectively.听听Such options had an incremental weighted average GDFV of $3.49, 听$8.53 and $6.94, respectively. In addition to the stock option grants to the Liberty CEO, Liberty granted performance-based restricted stock units ("RSUs") of Series B QVC Group common stock in 2017, 2016 and 2015 of 115 thousand, 53 thousand and 182 thousand, respectively.听听The RSUs had a fair value of $19.90, 听$25.11 and $29.41 per share, respectively, at the time they were granted.听听Liberty also granted performance-based RSUs of Series B Liberty Ventures common stock in 2016 and 2015 of 16 thousand and 13 thousand, respectively.听听The RSUs had a fair value of $38.79 and $42.33 per share, respectively, at the time they were granted.听听The 2017, 2016 and 2015 performance-based RSUs cliff vested in one听year, subject to the satisfaction of certain performance objectives and based on an amount determined by the compensation committee. During the fourth quarter of 2017, the Company entered into a series of transactions with certain officers of Liberty, associated with certain outstanding stock options, in order to recognize tax deductions in the current year versus future years (the 鈥淥ption Exchange鈥).听听On December 26, 2017 (the 鈥淕rant Date鈥), pursuant to the approval of the Compensation Committee of its Board of Directors, the Company effected the acceleration of (i) each unvested in-the-money option to acquire shares of LVNTA and (ii) each unvested in-the-money option to acquire shares of LVNTB, in each case, held by certain of its officers (collectively, the 鈥淓ligible Optionholders鈥).听听Following this acceleration, also on the Grant Date, each Eligible Optionholder exercised, on a net settled basis, all of his outstanding in-the-money vested and unvested options to acquire QVCA shares, LVNTA shares and LVNTB shares (the 鈥淓ligible Options鈥), and:
The Option Exchange was considered a modification under ASC 718 鈥 Stock Compensation, with the following impacts on compensation expense.听听The unamortized value of the unvested Eligible Options that were exercised, which was $14 million for LVNTA and LVNTB combined, will be expensed over the vesting period of the Restricted Shares attributable to the exercise of those options.听听The grant of new vested options resulted in incremental compensation expense in the fourth quarter of 2017 of $30 million for QVCA, LVNTA and LVNTB combined.听听The grant of Unvested New Options resulted in incremental compensation expense totaling $6 million for LVNTA and LVNTB combined, which will be amortized over the vesting periods of those options. The Company has calculated the GDFV for all of its equity classified awards using the Black-Scholes-Merton Model. The Company estimates the expected term of the Awards based on historical exercise and forfeiture data.听听For grants made in 2017, 听2016 and 2015, the range of expected terms was 2.0 to 6.7 years.听听The volatility used in the calculation for Awards is based on the historical volatility of Liberty's stocks and the implied volatility of publicly traded Liberty options. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject options. The following table presents the range of volatilities used by Liberty in the Black-Scholes-Merton Model for the 2017, 听2016 and 2015 QVC Group and Liberty Ventures grants. 听
听 Liberty - Outstanding Awards The following table presents the number and weighted average exercise price ("WAEP") of the Awards to purchase QVC Group and Liberty Ventures common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the Awards. 听 听
听 听 听
听 As of December听31, 2017, the total unrecognized compensation cost related to unvested Liberty Awards was approximately $116 million. Such amount will be recognized in the Company's consolidated statements of operations over a weighted average period of approximately 1.8听years. 听 Liberty - Exercises 听 The aggregate intrinsic value of all options exercised during the years ended December 31, 2017, 听2016 and 2015 was $145 million, $44 million and $115 million, respectively.听听The aggregate intrinsic value of options exercised for the year ended December 31, 2017 includes approximately $104 million related to the intrinsic value of options exercised as a result of the Option Exchange. 听 Liberty - Restricted Stock 听 The Company had approximately 5.2 million and 252 thousand unvested restricted shares of QVC Group and Liberty Ventures common stock, respectively, held by certain directors, officers and employees of the Company as of December 31, 2017.听听These Series A and Series B unvested restricted shares of QVC Group and Liberty Ventures had a weighted average GDFV of $24.00 and $50.46 per share, respectively. The aggregate fair value of all restricted shares of Liberty common stock that vested during the years ended December 31, 2017, 听2016 and 2015 was $23 million, $26 million and $16 million, respectively. Other Certain of the Company's other subsidiaries have stock-based compensation plans under which employees and non-employees are granted options or similar stock-based awards.听听Awards made under these plans vest and become exercisable over various terms and are typically cash settled and recorded as liability awards.听听During the year ended December 31, 2016, approximately $90 million of cash payments were made to settle CommerceHub stock based awards.听听The awards and compensation recorded, if any, under the plans at the other subsidiaries are not significant to Liberty. |
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