ADT 2014 Annual Report Download - page 159

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FORM 10-K
The fair market value of restricted stock units, both time vesting and those subject to specific performance
criteria, are expensed over the period of vesting. Restricted stock units that vest based upon passage of time
generally vest over a period of four years. Restricted stock units that vest dependent upon attainment of various
levels of performance (“performance share awards”) generally vest in their entirety three years from the grant
date. The fair value of restricted stock units is determined based on the closing market price of the underlying
stock on the grant date. The number of performance share awards included in the total restricted stock units
granted during fiscal year 2014 is immaterial. No performance share awards vested during fiscal year 2014.
The following table summarizes the restricted stock unit activity, including performance share awards, for
fiscal year 2014:
Shares
Weighted-
Average
Grant-
Date Fair
Value
Non-vested as of September 27, 2013 ............... 1,241,066 $33.75
Granted ....................................... 599,346 40.57
Vested ........................................ 552,020 28.37
Canceled ...................................... 175,700 38.36
Non-vested as of September 26, 2014 ............... 1,112,692 39.39
The weighted-average grant-date fair value of restricted stock units granted during fiscal year 2014 and
2013 was $40.57 and $45.91, respectively. The total fair value of restricted stock units vested during 2014 and
2013 was $15 million and $32 million, respectively.
As of September 26, 2014, there was $22 million of total unrecognized compensation cost related to non-
vested restricted stock units. This expense, net of forfeitures, is expected to be recognized over a weighted-
average period of approximately 2 years.
10. Equity
Common Stock
Shares Authorized and Outstanding—As of September 26, 2014, the Company had 1,000,000,000 shares of
$0.01 par value common stock authorized, of which 174,109,318 shares were outstanding.
Dividends—Holders of shares of the Company’s common stock are entitled to receive dividends when, as
and if declared by its board of directors out of funds legally available for that purpose. Future dividends are
dependent on the Company’s financial condition and results of operations, the capital requirements of its
business, covenants associated with debt obligations, legal requirements, regulatory constraints, industry practice
and other factors deemed relevant by its board of directors.
During fiscal years 2014 and 2013, the Company’s board of directors declared the following dividends on
ADT’s common stock:
2014
Dividend
Amount
Dividend
Declared Date
Dividend
Paid Date
To Stockholders on
Record as of
$0.20 January 9, 2014 February 19, 2014 January 29, 2014
$0.20 March 13, 2014 May 21, 2014 April 30, 2014
$0.20 July 18, 2014 August 20, 2014 July 30, 2014
$0.20 September 19, 2014 November 19, 2014 October 29, 2014
93