Hasbro 2008 Annual Report Download - page 73

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Information with respect to Stock Performance Awards for 2008, 2007 and 2006 is as follows:
2008 2007 2006
Outstanding at beginning of year . . . ............................ 1,194 738 —
Granted ............................................... 696 537 762
Forfeited ............................................... (60) (81) (24)
Outstanding at end of year ................................... 1,830 1,194 738
Weighted average grant-date fair value:
Granted ............................................... $27.10 28.74 19.00
Forfeited ............................................... $24.31 22.89 18.82
Outstanding at end of year ................................. $24.15 23.12 19.01
Stock Performance Awards granted during 2008 include 100 shares related to the 2006 award, reflecting
an increase in the ultimate amount of the award to be issued based on the Company’s actual results during the
performance period. These shares are excluded from the calculation of the weighted average grant-date fair
value of Stock Performance Awards granted during 2008.
During 2008, 2007 and 2006, the Company recognized $17,422, $11,122 and $2,390, respectively, of
expense relating to these awards. If minimum targets, as detailed under the award, are not met, no additional
compensation cost will be recognized and any previously recognized compensation cost will be reversed.
These awards were valued at the market value at the dates of grant and are being amortized over the three
fiscal years ending December 2010, over the three fiscal years ending December 2009 and over the 10 quarter
period from July 3, 2006 through December 2008 for the 2008, 2007 and 2006 awards, respectively. At
December 28, 2008, the amount of total unrecognized compensation cost related to these awards is
approximately $16,600 and the weighted average period over which this will be expensed is 19.56 months.
Total compensation expense related to stock options and the stock performance awards for the years
ended December 28, 2008, December 30, 2007 and December 31, 2006 was $33,300, $28,229 and $21,684,
respectively, and was recorded as follows:
2008 2007 2006
Cost of sales ........................................... $ 471 374 306
Research and product development .......................... 2,551 1,937 1,436
Selling, distribution and administration ....................... 30,278 25,918 19,942
33,300 28,229 21,684
Income tax benefit ...................................... 11,794 9,359 7,399
$21,506 18,870 14,285
63
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)