Stock-Based Compensation Plan

3 Months Ended

Mar. 31, 2015

Stock-Based Compensation Plan [Abstract]

Stock-Based Compensation Plan

(7) Stock–Based Compensation Plan

Stock Options

The Company grants stock options to certain employees and independent directors pursuant to its 2007 Equity Incentive Plan (Plan) which was adopted on April 23, 2007 and amended on June 5, 2009, June 3, 2011 and June 8, 2012. Under the Plan, a maximum of 1,721,980 share awards may be granted.

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. All of the stock options have a contractual term of ten years.

The following table summarizes the Company’s stock option activities for the three months ended March 31, 2015 and 2014:

	Three Months Ended March 31,
	2015			2014
		Weighted			Weighted
		Average			Average
	Number of	Exercise		Number of	Exercise
	Shares	Price		Shares	Price
Options outstanding at January 1	1,420,749	$	15.67	1,263,485	$	14.84
Options granted - employees	-	$	-	-	$	-
Options granted - directors	-	$	-	-	$	-
Options forfeited - employees	-	$	-	(5,417)	$	22.55
Options exercised - employees	(354,244)	$	12.35	(1,583)		17.77
Options outstanding at March 31	1,066,505	$	16.78	1,256,485	$	14.80
Options exercisable	835,276	$	15.31	1,065,373	$	13.23
Weighted average remaining term	5.1 years			5.0 years

The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2015 and 2014 was $4.0million and less than $0.1 million, respectively. The aggregate intrinsic value of all options outstanding as of March 31, 2015 was  $8.6million based on the closing price of the Company’s common stock of $24.57 per share on March 31, 2015, the last trading day of the quarter.

The Company recorded stock-based compensation expense of  $0.4 million for the three months ended March 31, 2015 and 2014.  As of March 31, 2015, the remaining unamortized stock-based compensation cost relating to stock options granted to the Company’s employees and independent directors was approximately $1.9 million which is to be recognized over the remaining weighted average vesting period of approximately 2.5  years.

CAI INTERNATIONAL, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Restricted Stock

The Company grants restricted stock to certain employees pursuant to the Plan. The restricted stock is valued based on the closing price of the Company’s stock on the date of grant and has a vesting period of four years. The following table summarizes the activity of restricted stock under the Company’s Plan:

	Number of	Weighted
	Shares of	Average
	Restricted	Grant Date
	Stock	Fair Value
Restricted stock outstanding, December 31, 2014	42,502	$	23.87
Restricted stock granted	-	$	-
Restricted stock vested	(1,046)	$	24.37
Restricted stock forfeited	-	$	-
Restricted stock outstanding, March 31, 2015	41,456	$	23.86

The Company recognized $0.1  million and less than  $0.1 million of stock compensation expense relating to restricted stock for the three months ended March 31, 2015 and 2014 respectively. As of March 31, 2015, unamortized stock compensation expense relating to restricted stock was $0.8  million to be recognized over the remaining average vesting period of 2.6  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 sheets.