Note 5: Long-term Incentive Plan

A. H. Belo sponsors a long-term incentive plan under which 8,000,000 shares of the Company’s Series A and Series B common stock are authorized for equity-based awards. Awards may be granted to A. H. Belo employees and outside directors in the form of non-qualified stock options, incentive stock options, restricted share awards, RSUs, performance shares, performance units or stock appreciation rights. In addition, stock options may be accompanied by full and limited stock appreciation rights. Rights and limited stock appreciation rights may also be issued without accompanying stock options. Awards under the Plan were also granted to holders of stock options issued by A. H. Belo’s former parent company in connection with the Company’s separation from its former parent in 2008.



Stock Options.   Stock options granted under the Plan are fully vested and exercisable. No options have been granted by the Company since 2009, and all compensation expense associated with stock options has been fully recognized as of December 31, 2016.

The table below sets forth a summary of stock option activity under the Plan.













The aggregate intrinsic value of options exercised in 2016,  2015 and 2014 was $300,  $100 and $1,099, respectively. The aggregate intrinsic value of outstanding options at December 31, 2016 was $13. The weighted-average remaining contractual life of the Company’s stock options was 1.4 years as of December 31, 2016.

Restricted Stock Units.    The Company’s RSUs have a  service condition and, subject to retirement eligibility, vest over a period of up to three years. Vested RSUs are redeemed 60 percent in A. H. Belo Series A common stock and 40 percent in cash over a period of up to three years. As of December 31, 2016, the liability for the portion of the awards to be redeemed in cash was $769. The table below sets forth a summary of RSU activity under the Plan.











In 2016, the Company issued 86,007 shares of Series A common stock and 57,341 shares were redeemed in cash for RSUs that were previously vested as of December 31, 2015. In addition, there were 237,074 and 224,911 RSUs that were vested and outstanding as of December 31, 2016 and 2015, respectively.



The fair value of RSU grants is determined using the closing trading price of the Company’s Series A common stock on the grant date. As of December 31, 2016,  unrecognized compensation expense related to the non-vested RSUs totaled $320, which is expected to be recognized over a weighted-average period of 1.0 years.



Compensation Expense.   A. H. Belo recognizes compensation expense for awards granted under the Plan over the vesting period of the award. Compensation expense related to RSUs granted under the Plan is set forth in the table below.