Stock-Based Compensation Plan

3 Months Ended

Mar. 31, 2014

Stock-Based Compensation Plan [Abstract]

Stock-Based Compensation Plan

(7) Stock–Based Compensation Plan

Stock Options

The following table summarizes the Company’s stock option activities for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31,
	2014			2013
		Weighted			Weighted
		Average			Average
	Number of	Exercise		Number of	Exercise
	Shares	Price		Shares	Price
Options outstanding at January 1	1,263,485	$	14.84	1,335,680	$	13.41
Options granted - employees	-	$	-	-	$	-
Options granted - directors	-	$	-	-	$	-
Options forfeited - employees	(5,417)	$	22.55	(834)	$	5.60
Options exercised - employees	(1,583)	$	17.77	(88,661)		12.50
Options outstanding at March 31	1,256,485	$	14.80	1,246,185	$	13.48
Options exercisable	1,065,373	$	13.23	981,310	$	11.99
Weighted average remaining term	5.0 years			5. 7 years

CAI INTERNATIONAL, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Stock options granted to employees have a vesting period of four years from grant date, with 25% vesting after one year, and 1/48th vesting each month thereafter until fully vested. Stock options granted to independent directors vest in one year.

The Company recorded stock-based compensation expense of  $0.4 million and $0.3 million for the three months ended March 31, 2014 and 2013, respectively.  As of March 31, 2014, the remaining unamortized stock-based compensation cost relating to stock options granted to the Company’s employees  and independent directors was approximately $1.7 million which is to be recognized over the remaining weighted average vesting period of approximately 2.0 years.

The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2014 was less than $0.1 million. The aggregate intrinsic value of all options outstanding as of March 31, 2014 was $12.6 million based on the closing price of the Company’s common stock of $24.67 per share on March 31, 2014, the last trading day of the quarter.

Restricted Stock

During the year ended December 31, 2013, the Company granted 28,150 shares of restricted common stock valued at $0.7 million to certain employees. The restricted stock was valued based on the closing price of the Company’s stock on the date of grant. The restricted stock has a vesting period of 4 years.

In January 2014, 625 shares with a grant date fair value of $22.99 per share were vested while 1,500 shares with a grant date fair value of $26.41  per share were forfeited, leaving a balance of 26,025 unvested shares as of March 31, 2014.

During the three months ended March 31, 2014, no additional shares of restricted stock were granted. The Company recognized less than $0.1 million of stock compensation expense relating to restricted stock for both the three months ended March 31, 2014 and 2013. As of March 31, 2014, unamortized stock compensation expense relating to restricted stock was $0.6 million to be recognized over the remaining average vesting period of 3.2 years.

Stock-based compensation expense is recorded as a component of marketing, general and administrative expense in the Company’s consolidated statements of income with a corresponding credit to additional paid-in capital in the Company’s consolidated balance sheet.