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SEC Filings

10-Q
HEARTWARE INTERNATIONAL, INC. filed this Form 10-Q on 11/02/2015
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Table of Contents

The weighted average grant date fair value per share of options issued in the nine months ended September 30, 2015 and 2014 was $27.10 and $32.41 per share, respectively.

The total intrinsic value of options exercised in the nine months ended September 30, 2015 and 2014 was approximately $0.2 million and $1.8 million, respectively. Cash received from options exercised in the nine months ended September 30, 2015 and 2014 was approximately $0.1 million and $0.8 million, respectively.

At September 30, 2015, there was approximately $0.2 million of unrecognized compensation expense, net of estimated forfeitures, related to non-vested options. This expense is expected to be recognized over a weighted average period of one year.

Restricted Stock Units

Each restricted stock unit (“RSU”) represents a contingent right to receive one share of our common stock. RSUs generally vest on a pro-rata basis on each anniversary of the issuance date over three or four years or vest in accordance with performance-based criteria. The RSUs with performance-based vesting criteria vest in one or more tranches contingent upon the achievement of pre-determined milestones related to the development of our products, the achievement of certain prescribed clinical and regulatory objectives, the achievement of specific financial performance measures or similar metrics. There is no consideration payable on the vesting of RSUs issued under the plans. Upon vesting, the RSUs are exercised automatically and settled in shares of our common stock.

Information related to RSUs at September 30, 2015 and activity in the nine months then ended is as follows:

 

     Number of
Units
(in thousands)
     Weighted
Average
Remaining
Contractual
Life (Years)
     Aggregate
Intrinsic Value
(in thousands)
 

Outstanding at December 31, 2014

     589         

Granted

     306         

Vested/Exercised

     (130      

Forfeited

     (36      

Expired

     —           
  

 

 

       

Outstanding at September 30, 2015

     729         1.48       $ 38,114   
  

 

 

       

The aggregate intrinsic value at September 30, 2015 noted in the table above represents the closing price of our common stock traded on NASDAQ multiplied by the number of RSUs outstanding.

At September 30, 2015, 71,705 of the RSUs outstanding were subject to performance-based vesting criteria as described above.

The total intrinsic value of RSUs vested in the nine months ended September 30, 2015 and 2014 was approximately $10.9 million and $5.3 million, respectively.

The fair value of each RSU award equals the closing price of our common stock on the date of grant. The weighted average grant date fair value per share of RSUs granted in the nine months ended September 30, 2015 and 2014 was $88.47 and $98.40, respectively.

At September 30, 2015, we had approximately $29.5 million of unrecognized compensation expense related to non-vested RSU awards, net of estimated forfeitures. This expense is expected to be recognized over a weighted average period of 1.5 years.

 

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