Cobalt Annual Report 2015 - page 118

Cobalt International Energy, Inc.
Notes to Consolidated Financial Statements (Continued)
F-26
12. Stockholders’ Equity
On May 13, 2014, the Company issued $1.3 billion aggregate principal amount of its 3.125% convertible senior notes due on
2024. As of December 31, 2014, $464.7 million was recorded to additional paid in capital as the equity component of the 3.125%
Notes.
See also Note 10—Long-term Debt.
13. Seismic and Exploration Expenses
Seismic and exploration expenses consisted of the following:
For Year Ended December 31,
2015
2014
2013
($ in thousands)
Seismic costs ............................................................................ $ 35,054 $ 31,316 $
43,160
Leasehold delay rentals ............................................................
6,930
7,391
6,660
Drilling rig expense and other exploration expense .................
3,334
2,724
27
$ 45,318 $ 41,431 $
49,847
14. Equity based Compensation
Overview.
Under the Company’s Long Term Incentive Plan (the “Incentive Plan”), the Company may issue stock options,
stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based awards to employees. At
December 31, 2015, 359,989 shares remain available for grant under the Incentive Plan. Additionally, on April 30, 2015, the
Company’s stockholders approved the Company’s 2015 Long Term Incentive Plan (the “2015 Plan”). The total number of shares of
our common stock available for issuance under the 2015 Plan as of December 31, 2015 is 11,850,000. However, on January 15, 2016
the Company granted a total of 571,428 shares of restricted stock and 1,129,944 stock options to two senior officers as required
pursuant to their employment agreements.
On January 28, 2010, the Company adopted the Non-Employee Directors Compensation Plan (the “NED Plan”). Under the
NED Plan, the Company may issue options, restricted stock units, other stock-based award or retainers to non-employee directors. At
December 31, 2015, 258,310 shares remain available for grant under the NED Plan.
The Company recognizes compensation cost for equity-based compensation to employees and non-employee directors over the
period during which the recipient is required to provide service in exchange for the award, based on the fair value of the equity
instrument on the date of grant, net of estimated forfeitures. If actual forfeitures differ from the Company’s estimates, additional
adjustments to compensation expense will be required in future periods.
Restricted Stock
. For restricted stock awards with market conditions, the fair value of the awards is measured using the asset-
or-nothing option pricing model. Restricted stock awards without market conditions and the performance-based awards are valued
using the market price of the Company’s common stock on the grant date. The Company records compensation cost, net of estimated
forfeitures, for stock-based compensation awards over the requisite service period except for performance-based awards. For
performance-based awards, compensation cost is recognized over the requisite service period as and when the Company determines
that the achievement of the performance condition is probable, using the per-share fair value measured at grant date.
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