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8-K
SUNEDISON, INC. filed this Form 8-K on 09/09/2013
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plans from the Parent. Options to employees are generally granted upon hire and annually or semi-annually, usually with four-year ratable vesting, although certain grants have three, four or five-year cliff vesting. No option has a term of more than 10 years. The exercise price of stock options granted has historically equaled the market price on the date of the grant.

The following table presents information regarding outstanding stock options as of December 31, 2012 and changes during the year then ended with regard to stock options allocated to us:

 

     Shares      Weighted-
Average
Exercise Price
     Aggregate
Intrinsic
Value (in
millions)
     Weighted-Average
Remaining
Contractual
Life
 

Beginning of 2012

       4,419,341        $          22.76          

Granted

     3,775,779          2.76          

Exercised

     —          —          

Forfeited

     (1,499,891)         12.71          

Expired

     (2,178,166)         32.18          
  

 

 

          

December 31, 2012

     4,517,063        $ 4.84        $              2.0                          9    
  

 

 

          

Options exercisable at December 31, 2012

     429,101        $ 18.03        $ —            

The following table presents information regarding outstanding stock options as of June 30, 2013 and changes during the six months then ended with regard to stock options allocated to us:

 

(unaudited)    Shares      Weighted-
Average
Exercise Price
     Aggregate
Intrinsic
Value (in
millions)
     Weighted-Average
Remaining
Contractual Life
 

Beginning of 2013

       4,517,063        $            4.84          

Granted

     857,383          4.60          

Exercised

     (11,825)         3.56          

Forfeited

     (96,308)         4.17          

Expired

     (31,962)         19.13          
  

 

 

          

June 30, 2013

     5,234,351        $ 4.73        $            23.0                       9    
  

 

 

          

Options exercisable at June 30, 2013

     621,905        $ 13.87        $ 0.8            

The aggregate intrinsic value in the tables above represents the total pre-tax intrinsic value (the difference between SunEdison’s closing stock price on the last trading day of the year ended December 31, 2012 and the six months ended June 30, 2013 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2012 and June 30, 2013. This amount changes based on the fair market value of SunEdison’s stock. There were no material amounts of option exercises and related cash receipts or tax benefits realized for the years ended December 31, 2012 and 2011 and for the six months ended June 30, 2013 and 2012.

At our Parent’s May 25, 2012 annual meeting of stockholders, stockholders approved amendments to the equity incentive plans to permit a one-time stock option exchange program pursuant to which certain employees, excluding directors and executive officers, would be permitted to surrender for cancellation certain outstanding stock options with an exercise price substantially greater than the then current trading price in exchange for fewer stock options at a lower exercise price. The option exchange program commenced on July 17, 2012 and closed on August 17, 2012. The number of new stock options replacing surrendered eligible options was determined by an exchange ratio dependent on the exercise price of the original options and constructed to result in the new option value being approximately equal to the value of surrendered options. The program was designed to cause us to incur minimal incremental stock-based compensation expense in future periods. The option exchange resulted in the cancellation of old options and the issuance of new options with an award date of August 20, 2012

 

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