Note 11: Share-Based Payments

We currently grant share-based awards to our employees, non-employee directors and consultants under our 2011 Incentive Plan (the “Plan”). The Plan permits the granting of stock options, restricted stock, restricted stock units, and performance-based restricted stock.

Certain information regarding our share-based payments is as follows:



	Three Months Ended					Six Months Ended
	June 30,					June 30,
Dollars in thousands	2014			2013		2014		2013
Share-based payments expense:
Share-based compensation - stock options	$	223		$	321	$	456	$	898
Share-based compensation - restricted stock	3,443			2,691		6,357		5,306
Share-based payments for content arrangements	(587		)	831		31		2,476
Total share-based payments expense	$	3,079		$	3,843	$	6,844	$	8,680
Tax benefit on share-based payments expense	$	1,182		$	1,459	$	2,627	$	3,289



	June 30, 2013
Dollars in thousands	Unrecognized Share-Based Payments Expense		Weighted-Average Remaining Life
Unrecognized share-based payments expense:
Share-based compensation - stock options	$	1,205	2.3 years
Share-based compensation - restricted stock	27,322		2.6 years
Share-based payments for content arrangements	361		0.3 years
Total unrecognized share-based payments expense	$	28,888

Share-Based Compensation

Stock options

Shares of common stock are issued upon exercise of stock options. The following table presents a summary of stock option activity for 2014:



Shares in thousands	Options		Weighted Average Exercise Price
Outstanding, December 31, 2013	248		$	45.72
Granted	—		$	—
Exercised	(84	)	$	33.27
Cancelled, expired, or forfeited	(12	)	$	52.13
Outstanding, June 30, 2014	152		$	52.07

Certain information regarding stock options outstanding as of June 30, 2014, is as follows:



	Options
Shares and intrinsic value in thousands	Outstanding		Exercisable
Number	152		78
Weighted average per share exercise price	$	52.07	$	50.70
Aggregate intrinsic value	$	1,120	$	685
Weighted average remaining contractual term (in years)	7.10		6.18

Restricted stock and performance based restricted stock awards

Restricted stock awards are granted to eligible employees, including executives, and non-employee directors. Awards granted to employees and executives vest annually in equal installments over four years. Non-employee director awards vest one year after the grant date. Performance-based restricted stock awards are granted to executives only, with established performance criteria approved by the Compensation Committee of the Board of Directors. The fair value of non-performance-based awards is based on the market price on the grant date and is recognized on a straight-line basis over the vesting period.

Awards of performance-based restricted stock made prior to 2013, once earned, vest in equal installments over three years from the date of grant. Awards of performance-based restricted stock made in and subsequent to 2013, once earned, vest in two installments over three years from the date of grant (65% of the award vests two years from the date of grant and the remaining 35% of the award vests three years from the date of grant). The restricted shares require no payment from the grantee. The fair value of performance-based awards is based on achieving specific performance conditions and is recognized over the vesting period.

The following table presents a summary of restricted stock award activity for 2014:



Shares in thousands	Restricted Stock Awards		Weighted Average Grant Date Fair Value
Non-vested, December 31, 2013	597		$	52.58
Granted	323		$	72.08
Vested	(167	)	$	50.29
Forfeited	(82	)	$	57.53
Non-vested, June 30, 2014	671		$	61.93

Share-Based Payments for Content Arrangements

We have granted restricted stock as part of content license agreements with certain movie studios. The expense related to these agreements is included within direct operating expenses in our Consolidated Statements of Comprehensive Income and is adjusted based on the number of unvested shares and market price of our common stock each reporting period. No restricted stock was granted for content arrangements during the six months ended June 30, 2014.

Information related to the shares of restricted stock granted as part of these agreements as of June 30, 2014, is as follows:



Whole shares	Granted	Vested	Unvested	Remaining Vesting Period
Sony	193,348	164,346	29,002	0.1 years
Paramount	300,000	255,000	45,000	0.5 years
Total	493,348	419,346	74,002

Rights to Receive Cash

As a part of the acquisition of ecoATM, we issued replacement awards for unvested restricted stock and options in ecoATM with rights to receive cash equal to the per share merger consideration for restricted stock and net of the exercise price for options. The replacement awards vest in accordance with the terms of the original replaced award. The fair value of the original and replacement awards amounted to $32.1 million, $1.4 million of which was attributed to pre-combination services rendered and included in the calculation of total consideration transferred. The replacement awards are considered liability classified as they represent rights to receive cash. Expense associated with the post-combination awards will be recognized net of forfeitures, and cash payments will be made, in accordance with the awards' vesting schedule, generally on a monthly basis. We recognized $6.8 million in expense associated with the issuance of rights to receive cash for the six months ended June 30, 2014. The expected future recognition of expense associated with the rights to receive cash as of June 30, 2014 is as follows:



Dollars in thousands	Expected Expense
Remainder of 2014	$	6,445
2015	4,644
2016	2,992
2017	518
Total expected expense	$	14,599