SEC Filings

10-Q
CRAY INC filed this Form 10-Q on 10/30/2018
Entire Document
 


A summary of the Company’s year-to-date stock option activity and related information follows:
 
 
Options
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term
Outstanding at December 31, 2017
 
2,034,474

 
$
17.26

 
 
Grants
 
170,053

 
$
27.09

 
 
Exercises
 
(194,954
)
 
$
9.24

 
 
Canceled and forfeited
 
(69,952
)
 
$
26.76

 
 
Outstanding at September 30, 2018
 
1,939,621

 
$
18.58

 
5.4
Exercisable at September 30, 2018
 
1,467,362

 
$
16.79

 
4.4
Available for grant at September 30, 2018
 
2,329,513

 
 
 
 
As of September 30, 2018, there was $11.2 million of aggregate intrinsic value of outstanding stock options, including $10.5 million of aggregate intrinsic value of exercisable stock options. Intrinsic value represents the total pretax intrinsic value for all “in-the-money” options (i.e., the difference between the Company’s closing stock price on the last trading day of its third quarter of 2018 and the exercise price, multiplied by the number of shares of common stock underlying the stock options) that would have been received by the option holders had all option holders exercised their options on September 30, 2018. During the three and nine months ended September 30, 2018, stock options covering 2,140 and 194,954 shares of common stock, respectively, with a total intrinsic value of $37 thousand and $2.7 million, respectively, were exercised. During the three and nine months ended September 30, 2017, stock options covering 67,234 and 80,757 shares of common stock, respectively, with a total intrinsic value of $0.7 million and $0.9 million, respectively, were exercised.
The fair value of unvested restricted stock and unvested restricted stock units is based on the market price of a share of the Company’s common stock on the date of grant and is amortized over the vesting period.
A summary of the Company’s unvested restricted stock grants and changes during the nine months ended September 30, 2018 is as follows:
 
 
Service Vesting Restricted Shares
 
 
Shares
 
Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2017
 
112,325

 
$
24.09

Granted
 
28,469

 
$
27.10

Forfeited
 
(680
)
 
$
26.26

Vested
 
(105,595
)
 
$
23.58

Outstanding at September 30, 2018
 
34,519

 
$
27.68

The estimated forfeiture rate applied to the Company’s restricted stock grants during the three and nine months ended September 30, 2018 and 2017, was 8.0%. The aggregate fair value of restricted stock vested during the three and nine months ended September 30, 2018, was $0.5 million and $2.5 million, respectively. The aggregate fair value of restricted stock vested during the three and nine months ended September 30, 2017, was $0.5 million and $2.8 million, respectively.

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