Blizzard 2009 Annual Report Download - page 84

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PlanandtheActivision,Inc.SecondAmendedandRestated2002EmployeeStockPurchasePlanfor
InternationalEmployees(together,the“ESPP”).Beforethetermination,uptoanaggregateof4,000,000
sharesofActivision,Inc.commonstockwasavailableforpurchasebyeligibleemployeesduringtwosix
monthofferingperiodsthatcommencedeachApril1andOctober1(the“OfferingPeriod”)atapriceper
sharegenerallyequalto85%ofthelowerofthefairmarketvalueofourcommonstockonthefirstdayof
theOfferingPeriodandthefairmarketvalueofourcommonstockonthepurchasedate(thelastdayofthe
OfferingPeriod).Employeeshadbeenabletopurchaseshareshavingavaluenotexceeding15%oftheir
grosscompensationduringanOfferingPeriodandwerelimitedtoamaximumof$10,000invalueforany
twopurchaseswithinthesamecalendaryear.AsaresultoftheBusinessCombinationtheofferingperiod
ineffectatthetimeoftheBusinessCombinationwasassumedbyus,andonOctober1,2008,employees
purchased262,002sharesofourcommonstockatapurchasepriceof$11.65pershareundertheESPP.
RestrictedStockUnit,RestrictedStockAwards,andPerformanceSharesActivities
Wegrantrestrictedstockunits,restrictedstockawards,andperformanceshares(collectively
referredtoas“restrictedstockrights”)underthe2008Plantoemployeesaroundtheworld,andwehave
assumedasaresultoftheBusinessCombinationtherestrictedstockrightsgrantedbyActivision,Inc.
Restrictedstockawardsunitsentitletheholdersthereoftoreceivesharesofourcommonstockattheendof
aspecifiedperiodoftimeorotherwiseuponaspecifiedoccurrence.Restrictedstockawardsand
performancesharesareissuedandoutstandingupongrant;however,holdersofrestrictedstockand
performancesharesarerestrictedfromsellingthesharesuntiltheyvest.Uponvestingofrestrictedstock
rights,wemaywithholdsharesotherwisedeliverabletosatisfytaxwithholdingrequirements.Restricted
stockrightsaresubjecttoforfeitureandtransferrestrictions.Vestingforrestrictedstockrightsis
contingentupontheholders’continuedemploymentwithusandmaybesubjecttootherconditions.Ifthe
vestingconditionsarenotmet,unvestedrestrictedstockrightswillbeforfeited.
InconnectionwiththeconsummationoftheBusinessCombination,onJuly9,2008,RobertA.
Kotick,ourChiefExecutiveOfficer,receivedagrantof2,500,000performanceshares,whichvestin
20%incrementsoneachofthefirst,second,third,andfourthanniversariesofthedateofgrant,with
another20%vestingonDecember31,2012,theexpirationdateofMr.Kotick’semploymentagreement
withtheCompany,ineachcasesubjecttotheCompanyattainingthespecifiedcompoundannualtotal
shareholderreturntargetforthatvestingperiod.IftheCompanydoesnotachievetheperformancetarget
foravestingperiod,noperformanceshareswillvestforthatvestingperiod.If,however,theCompany
achievesaperformancetargetforasubsequentvestingperiod,thenalloftheperformancesharesthat
wouldhavevestedonthepreviousvestingdatewillvestonthevestingdatewhentheperformancetargets
wereachieved.
Thefollowingtablesummarizesourrestrictedstockrightsactivityfortheyearended
December31,2009(amountsinthousandsexceptpershareamounts):

Restricted
Stock
Rights
Weighted
AverageGrant
DateFair
Value
BalanceatDecember31,2008................................
10,267
$14.52
Granted...............................................................................
2,755
11.80
Vested.................................................................................
(1,539)
11.49
Forfeited.............................................................................
(180)
11.29
BalanceatDecember31,2009................................
11,303
12.69
AtDecember31,2009,approximately$62millionoftotalunrecognizedcompensationcostwas
relatedtorestrictedstockrights,ofwhich$8millionwasrelatedtoperformanceshares,whichcostis
expectedtoberecognizedoveraweightedaverageperiodof1.8yearsand3.5years,respectively.Total
grantdatefairvalueofrestrictedstockrightsvestedwas$34millionand$9millionfortheyearsended
December31,2009and2008,respectively.