|TTEC HOLDINGS, INC. filed this Form 10-K on 03/06/2019|
TTEC HOLDINGS, INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
A summary of the status of the Company’s non-vested RSUs and performance-based RSUs and activity for the year ended December 31, 2018 is as follows:
All RSUs vested during the year ended December 31, 2018 were issued out of treasury stock. As of December 31, 2018, there was approximately $23.1 million of total unrecognized compensation expense and approximately $32.6 million in total intrinsic value related to non-vested RSU grants. The unrecognized compensation expense will be recognized over the remaining weighted-average vesting period of 1.4 years using the straight-line method.
There were no stock options granted during 2018, 2017 or 2016. The total intrinsic value of options exercised during the years ended December 31, 2018, 2017 and 2016 was $156 thousand, $194 thousand and $400 thousand, respectively. The total fair value of stock options vested during the years ended December 31, 2018, 2017 and 2016 was zero, respectively.
Cash received from option exercises under the Plans for the years ended December 31, 2018, 2017 and 2016 was $0.2 million, $2.1 million and $0.4 million, respectively. The recognized tax benefit from option exercises for the years ended December 31, 2018, 2017 and 2016 was $0.0 million, $0.0 million and $0.2 million, respectively. Shares issued for options exercised during the year ended December 31, 2018 were issued out of treasury stock.
Stock Repurchase Program
The Company has a stock repurchase program, which was initially authorized by the Company’s Board of Directors in November 2001. As of December 31, 2018, the cumulative authorized repurchase allowance was $762.3 million. During the year ended December 31, 2018, the Company purchased no additional shares. Since inception of the program, the Company has purchased 46.1 million shares for $735.8 million. As of December 31, 2018, the remaining allowance under the program was approximately $26.6 million. For the period from January 1, 2019 through February 28, 2019, the Company did not purchase additional shares. The stock repurchase program does not have an expiration date.
The Company entered into an agreement under which Avion, LLC (“Avion”) and Airmax LLC (“Airmax”) provide certain aviation flight services as requested by the Company. Such services include the use of an aircraft and flight crew. Kenneth D. Tuchman, Chairman and Chief Executive Officer of the Company, has a direct 100% beneficial ownership interest in Avion and Airmax. During 2018, 2017 and 2016, the Company expensed $1.1 million, $1.1 million and $1.0 million, respectively, to Avion and Airmax for services provided to the Company. There was $122 thousand in payments due and outstanding to Avion and Airmax as of December 31, 2018.