Black & Decker 2015 Annual Report Download - page 95

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81
2016, unrecognized compensation expense for RSU’s amounted to $67.5 million and this cost will be recognized over a
weighted-average period of 2.1 years.
A summary of non-vested restricted stock unit and award activity as of January 2, 2016, and changes during the twelve month
period then ended is as follows:
Restricted Share
Units & Awards
Weighted Average
Grant
Date Fair Value
Non-vested at January 3, 2015.............................................................................. 1,494,543 $ 77.16
Granted ................................................................................................................. 349,768 107.43
Vested.................................................................................................................... (713,885) 101.10
Forfeited................................................................................................................ (43,757) 100.44
Non-vested at January 2, 2016.............................................................................. 1,086,669 $ 88.19
The total fair value of shares vested (market value on the date vested) during 2015, 2014 and 2013 was $72.2 million, $64.5
million and $63.0 million, respectively.
Non-employee members of the Board of Directors received restricted share-based grants which must be cash settled and
accordingly mark-to-market accounting is applied. Additionally, the Board of Directors were granted restricted share units for
which compensation expense of $1.1 million was recognized for 2015, 2014 and 2013.
Long-Term Performance Awards:
The Company has granted Long Term Performance Awards (“LTIPs”) under its 2009 and 2013 Long Term Incentive Plans to
senior management employees for achieving Company performance measures. Awards are payable in shares of common stock,
which may be restricted if the employee has not achieved certain stock ownership levels, and generally no award is made if the
employee terminates employment prior to the payout date. LTIP grants were made in 2013, 2014 and 2015. Each grant has
separate annual performance goals for each year within the respective three year performance period. Earnings per share and
return on capital employed or cash flow return on investment represent 75% of the share payout of each grant. There is a third
market-based element, representing 25% of the total grant, which measures the Company’s common stock return relative to
peers over the performance period. The ultimate delivery of shares will occur in 2016, 2017 and 2018 for the 2013, 2014 and
2015 grants, respectively. Total payouts are based on actual performance in relation to these goals.
In 2010, the Company initiated a Working Capital Incentive Plan under its 2009 Long Term Incentive Plan. The program
provided executives the opportunity to receive stock in the event certain working capital turn objectives were achieved by June
of 2013 and sustained for a period of at least six months. The ultimate issuance of shares occurred in the third quarter of 2013
based on actual performance during the performance period.
Expense recognized for these performance awards amounted to $13.8 million in 2015, $11.4 million in 2014, and $9.4 million
in 2013. With the exception of the market-based award, in the event performance goals are not met, compensation cost is not
recognized and any previously recognized compensation cost is reversed.
A summary of the activity pertaining to the maximum number of shares that may be issued is as follows:
Share Units
Weighted Average
Grant
Date Fair Value
Non-vested at January 3, 2015 ................................................................................ 847,973 $ 73.76
Granted .................................................................................................................... 251,315 91.90
Vested...................................................................................................................... (42,771) 74.86
Forfeited .................................................................................................................. (213,976) 74.86
Non-vested at January 2, 2016 ................................................................................ 842,541 $ 78.83