XML 127 R49.htm IDEA: XBRL DOCUMENT

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Compensation Expense Relating to Restricted Awards

Compensation expense from continuing operations relating to restricted awards, which is primarily recorded in Employee compensation and benefits, and the corresponding income tax benefit, which is recorded in Income tax (benefit) expense on the Consolidated Statements of Operations are presented in the following table (in thousands):



	For the year ended December 31,
	2014		2013
Stock award compensation expense	$	55,402	$	33,067
Income tax benefit	21,053		11,573

The following is a summary of the changes in the incentive units for the year ended December 31, 2014 (units in thousands):



	Vested
Incentive units at December 31, 2013	49
Issued	—
Vested	—
Exercised	(11	)
Canceled	—
Incentive units at December 31, 2014	38

Summary of Restricted Awards Activity

The following table summarizes restricted awards activity for the year ended December 31, 2014 (awards in thousands):



	Restricted Stock Units
	Number of Units		Weighted- Average Grant date Fair Value
Outstanding at December 31, 2013	8,420		$	10.71
Granted	4,937		10.99
Vested	(3,464	)	10.77
Forfeited	(746	)	11.66
Outstanding at December 31, 2014	9,147		$	10.77

Stock Options, Valuation Assumptions

The weighted average assumptions used for stock options granted in 2013 were as follows:



	2013
Dividend yield	—	%
Expected volatility	35.0	%
Risk-free interest rate	1.0	%
Expected life (in years)	3.5

Compensation Expense Relating to Stock Options

Compensation expense from continuing operations relating to stock options and SARs, all of which was recorded in Employee compensation and benefits, as well as the corresponding income tax benefit, which is recorded in Income tax (benefit) expense on the Consolidated Statements of Operations are as follows (in thousands):



	For the year ended December 31,
	2014		2013
Stock option and SAR compensation expense	$	3,807	$	1,813
Income tax benefit	1,447		635

Summary of Stock Option Activity

The following table summarizes stock option and SAR activity and stock options exercisable for the year ended December 31, 2014 (awards in thousands):



	Number of Stock Awards		Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted- Average Remaining Life (years)
Outstanding at December 31, 2013 ⁽¹⁾	4,967		$	18.45
Granted at market value	—		—
Exercised	—		—
Forfeited or expired	(276	)	36.16
Outstanding at December 31, 2014 ⁽¹⁾	4,691		$	17.41	$	3,438	3.41
Exercisable at December 31, 2014	1,809		$	20.95	$	1,146	3.23
Available for future grants at December 31, 2014 ⁽²⁾	16,291

⁽¹⁾ Includes 1.7 million of SARs.

⁽²⁾ Represents options, SARs and awards available for grant under the KCG Plan.

Shares Authorized under Stock Option Plans, by Exercise Price Range



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Outstanding at 12/31/14	Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price		Number Exercisable at 12/31/14	Weighted- Average Exercise Price
$8.24 - $8.24	833	3.61	$	8.24	278	$	8.24
$8.25- $8.25	91	3.64	8.25		30	8.25
$11.65 - $11.65	1,700	3.51	11.65		567	11.65
$22.50 - $22.50	1,700	3.51	22.50		567	22.50
$23.70 - $52.98	294	2.01	40.94		294	40.94
$53.91 - $53.91	74	2.08	53.91		74	53.91
	4,691	3.41	$	17.41	1,809	$	20.95

Schedule of Compensation Costs

Compensation expense (benefit) related to the Class B, Class E and Incentive units, all of which are recorded within Employee compensation and benefits on the Consolidated Statements of Operations are as follows (in thousands):



	For the year ended December 31,
	2014			2013		2012
Class B and E units	$	—		$	19,860	$	12,320
Incentive units	(269		)	2,446		1,264
Total	$	(269	)	$	22,306	$	13,584

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References+ Details