Discover 2011 Annual Report Download - page 137

Download and view the complete annual report

Please find page 137 of the 2011 Discover annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 178

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178

125
The following table summarizes the total intrinsic value of the RSUs converted to common stock and the total grant date
fair value of RSUs vested (dollars in thousands):
Intrinsic value of RSUs converted to common stock
Grant date fair value of RSUs vested
Weighted average grant date fair value of RSUs granted
For the Years Ended November 30,
2011
$ 29,891
$ 35,045
$ 19.57
2010
$ 25,727
$ 46,620
$ 15.08
2009
$ 34,868
$ 64,973
$ 10.36
As of November 30, 2011, there was $25.9 million of total unrecognized compensation cost related to non-vested RSUs.
The cost is expected to be recognized over a total period of 3.3 years and a weighted average period of 1.9 years.
Performance Stock Unit Activity. The following table sets forth the activity related to vested and unvested PSU's during
the year ended November 30, 2011:
Performance stock units at November 30, 2010
Granted
Conversions to common stock
Forfeited
Performance stock units at November 30, 2011
Number of
Shares
—
787,921
—
(25,005)
762,916
Weighted
Average Grant-
Date Fair Value
—
$19.15
—
$19.15
$19.15
Aggregate
Intrinsic Value (in
thousands)
$18,173
The following table sets forth the activity related to unvested PSUs during the year ended November 30, 201l:
Unvested performance stock units at November 30, 2010(1)
Granted
Vested
Forfeited
Unvested performance stock units at November 30, 2011
Number of Shares
—
787,921
—
(25,005)
762,916
Weighted-Average
Grant-Date Fair Value
—
$19.15
—
$19.15
$19.15
(1) Unvested performance stock units represent awards where recipients have yet to satisfy either explicit vesting terms or retirement-eligibility requirements.
Compensation cost associated with performance stock units is determined based on the number of instruments granted, the
fair value on the date of grant, and the performance factor. The fair value is amortized on a straight-line basis, net of estimated
forfeitures over the requisite service period. Each PSU is a restricted stock instrument that is subject to additional conditions and
constitutes a contingent and unsecured promise by the Company to pay up to two shares of the Company's common stock on the
conversion date for the PSU contingent on the number of PSU shares to be issued. PSUs have a performance period of two years
and a vesting period of three years. The requisite service period of an award, having both performance and service conditions, is
the longest of the explicit, implicit and derived service periods.
As of November 30, 2011, there was $19.1 million of total unrecognized compensation cost related to non-vested PSUs.
The cost is expected to be recognized over a total period of 2.09 years and a weighted-average period of 1.9 years.
Option awards are granted with an exercise price equal to the fair market value of one share of the Company's common
stock at the date of grant; these types of awards expire ten years from the grant date and may be subject to restrictions on
transfer, vesting requirements, which are set at the discretion of the Compensation Committee of the Company's Board of
Directors, or cancellation under specified circumstances. Stock awards also may be subject to similar restrictions determined at
the time of grant under this plan. Certain option and stock awards provide for accelerated vesting if there is a change in control
or upon certain terminations (as defined in the Omnibus Plan or the award certificate).
Table of Contents