NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
necessary, in subsequent periods if actual forfeitures differ from those estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of the surrendered option. The forfeiture analysis is
re-evaluated
annually and the forfeiture rate is adjusted as necessary. Ultimately, the actual expense recognized over the vesting period will only be for those shares that vest.
Based on an analysis of historical forfeitures, the Company applied an annual forfeiture rate of 4.85% in 2021, estimating approximately 86% of its options would actually vest. For 2020 and 2019, the Company applied an annual forfeiture rate of 5.25%, estimating approximately 85% of its options would actually vest in those two years.
of the activity under the 2000 Plan as of December 31, 2021 and changes during the year then ended, is presented below (in thousands except for share and weighted-average data):
|
|
|
|
|
Weighted- Average Exercise Price |
|
|
Weighted- Average Remaining Contractual Life in Years |
|
|
Aggregate Intrinsic Value |
|
Outstanding on December 31, 2020 |
|
|
2,023,477 |
|
|
$ |
20.98 |
|
|
|
|
|
|
|
|
|
Granted |
|
|
267,559 |
|
|
$ |
93.40 |
|
|
|
|
|
|
|
|
|
Forfeited and expired |
|
|
(61,924 |
) |
|
$ |
58.95 |
|
|
|
|
|
|
|
|
|
Exercised |
|
|
(551,451 |
) |
|
$ |
13.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding on December 31, 2021 |
|
|
1,677,661 |
|
|
$ |
33.48 |
|
|
|
4.56 |
|
|
$ |
157,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable on December 31, 2021 |
|
|
776,559 |
|
|
$ |
11.63 |
|
|
|
2.93 |
|
|
$ |
89,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vested or expected to vest as of December 31, 2021(1) |
|
|
1,617,003 |
|
|
$ |
32.10 |
|
|
|
4.46 |
|
|
$ |
153,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. The number of options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options. |
As of December 31, 2020 and 2019, the Company had options exercisable for 924,964 and 1,475,947 shares respectively, for which the weighted average exercise prices were $9.05 and $8.74, respectively.
During the years ended December 31, 2021, 2020, and 2019, the total intrinsic value of Vicor options exercised (i.e., the difference between the market price at exercise and the price paid by the employee to exercise the options) was approximately $56,933,000, $50,410,000, and $6,636,000, respectively. The total amount of cash received by the Company from options exercised in 2021, 2020, and 2019, was $7,616,000, $9,127,000, and $2,437,000, respectively. The total grant-date fair value of stock options granted during the years ended December 31, 2021, 2020, and 2019 was approximately $10,506,000, $10,847,000, and $1,657,000, respectively.
As of December 31, 2021, there was approximately $15,019,000 of total unrecognized compensation cost related to unvested
non-performance
based awards for Vicor. That cost is expected to be recognized over a weighted-average period of 1.6 years for those awards. The expense will be recognized as follows: $6,837,000 in 2022, $4,142,000 in 2023, $2,478,000 in 2024, $1,260,000 in 2025, and $302,000 in 2026.
The weighted-average fair value of Vicor options granted was $39.27, $30.63, and $14.30, in 2021, 2020, and 2019, respectively.
64