Blizzard 2009 Annual Report Download - page 90
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RestrictedStockUnit(RSUs)
RSUswereawardedtoU.S.residentexecutivesandemployeesin2006and2007uponthe
achievementofcertainoperatingobjectivesassetforthinVivendi’sannualbudget,andthentheRSUsso
awardedwillcliffvestedattheendofatwoyearvestingperiod.Theparticipantwillbeentitledtoreceive
acashpaymentequaltothethencurrentvalueoftheRSUstwoyearsaftervesting.ThevalueoftheRSUs
willbebasedonthevalueofVivendisharesatthetimethecashpaymentismade,plusthevalueof
dividendspaidonVivendisharesduringthetwoyearperiodaftervesting(convertedintolocalcurrency
basedonprevailingexchangerates).
CompensationcostinrespectoftheRSUawardsisrecognizedonastraightlinebasisoverthe
twoyearvestingperiod.Thevalueoftheawardsisremeasuredattheendofeachquarterenduntilthe
dateofsettlementoftheawards,andthecompensationcostadjustedaccordingly,proratatoRSUsvested
asoftherelevantreportingdate.
MethodandAssumptionsonValuationofVivendiCorporatePlans
VivendiGamesestimatedthefairvalueofstockbasedawardsgrantedusingabinomialoption
pricingmodel.Forpurposesofdeterminingtheexpectedtermandintheabsenceofhistoricaldatarelating
tostockoptionsexercises,VivendiGamesappliedasimplifiedapproach:theexpectedtermofequity
settledinstrumentsgrantedwaspresumedtobethemidpointbetweenthevestingdateandtheendofthe
contractualterm.Forcashsettledinstruments,theexpectedtermappliedwasequalto:
• forawardsthatareexercisable,onehalfoftheresidualcontractualtermoftheinstrumentat
thereportingdate;and
• forawardsthatarenotyetexercisable,theaverageoftheresidualvestingperiodandthe
residualcontractualtermoftheinstrumentatthereportingdate.
ForstockbasedawardsinVivendistock,thecomputedvolatilitycorrespondstotheaverageof
Vivendi’sthreeyearhistoricalvolatilityanditsimpliedvolatility,whichisdeterminedwithVivendiput
andcalloptionstradedontheMarchédesOptionsNégociablesdePariswithamaturityofsixmonthsor
more.
Equitysettledawardsaredenominatedineuros.Thedollaramountsincludedinthetablebelow
areonlyindicativeoftheoriginaleuroamountsconvertedintoU.S.dollarsasofDecember31,2009,using
theyearendbalancesheetexchangerate.Assuch,amountssetforthinU.S.dollarswillfluctuatewith
futurechangesinexchangerates.