Harman Kardon 2007 Annual Report Download - page 73

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60
A summary of the status of our nonvested restricted stock as of June 30, 2007 and changes during the
year ended June 30, 2007, is presented as follows:
Weighted
average
grant-date
Shares fair value
Nonvested at July 1, 2006 37,000 $85.36
Granted --- ---
Vested --- ---
Forfeited (25,000) 86.98
Nonvested at June 30, 2007 12,000 $82.00
As of June 30, 2007, there was $0.3 million of total unrecognized compensation cost related to nonvested
restricted stock-based compensation arrangements granted under the plan. The weighted average
recognition period is 1.13 years. No restricted stock vested in the years ended June 30, 2007, 2006 and
2005.
During fiscal 2007, 25,000 restricted stock units were granted with a zero-value exercise price and an
aggregate intrinsic value of $2.9 million. As of June 30, 2007, there was $1.3 million of total
unrecognized compensation cost related to restricted stock unit compensation arrangements granted under
the 2002 Plan. The weighted average recognition period is 2.26 years. No restricted stock units vested or
were exercisable in fiscal 2007.
Pro Forma Disclosure
We adopted SFAS No. 123R in July 2005 and SFAS No. 123 in July 2002. Prior to fiscal 2003, we
accounted for expense under the stock option plans according to the provisions of APB No. 25 and related
interpretations. During fiscal 2004 and 2005 under SFAS No. 123, options granted in fiscal years prior to
fiscal 2003 were accounted for using the intrinsic value method as described in APB No. 25, Accounting
for Stock Issued to Employees. The following table illustrates the effect on net income and earnings per
share if we had applied the fair value recognition provisions of SFAS No. 123, Accounting for Stock
Based Compensation, to all of our outstanding and unvested awards in fiscal 2005.