Arrow Electronics 2011 Annual Report Download - page 74

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ARROW ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands except per share data)
72
employee director's termination of Board service, each unit in their deferral account will be converted into a share of company
stock and distributed to the non-employee director as soon as practicable following such date.
Summary of Non-Vested Shares
The following information summarizes the changes in non-vested performance shares, performance units, restricted stock, and
restricted stock units for 2011:
Non-vested shares at December 31, 2010
Granted
Vested
Forfeited
Non-vested shares at December 31, 2011
Shares
3,242,976
1,084,667
(1,245,952)
(144,972)
2,936,719
Weighted
Average Grant
Date Fair Value
$ 22.07
36.42
20.47
27.87
27.76
As of December 31, 2011, there was $39,294 of total unrecognized compensation cost related to non-vested shares which is
expected to be recognized over a weighted-average period of 2.1 years. The total fair value of shares vested during 2011, 2010,
and 2009 was $48,055, $24,710, and $8,809, respectively.
Stock Ownership Plan
The company maintains a noncontributory employee stock ownership plan, which enables most North American employees to
acquire shares of the company's common stock. Contributions, which are determined by the Board, are in the form of common
stock or cash, which is used to purchase the company's common stock for the benefit of participating employees. Contributions
to the plan in 2011 were $5,222. The company did not make any contributions to the plan in 2010 and 2009.
13. Employee Benefit Plans
Supplemental Executive Retirement Plans ("SERP")
The company maintains an unfunded Arrow SERP under which the company will pay supplemental pension benefits to certain
employees upon retirement. There are 9 current and 16 former corporate officers participating in this plan. The Board determines
those employees who are eligible to participate in the Arrow SERP.
The Arrow SERP, as amended, provides for the pension benefits to be based on a percentage of average final compensation, based
on years of participation in the Arrow SERP. The Arrow SERP permits early retirement, with payments at a reduced rate, based
on age and years of service subject to a minimum retirement age of 55. Participants whose accrued rights under the Arrow SERP,
prior to the 2002 amendment, which were adversely affected by the amendment, will continue to be entitled to such greater rights.
The company acquired Wyle Electronics ("Wyle") in 2000. Wyle also sponsored an unfunded SERP for certain of its executives.
Benefit accruals for the Wyle SERP were frozen as of December 31, 2000. There are 19 participants in this plan.