Hasbro 2009 Annual Report Download - page 79

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Information with respect to Stock Performance Awards for 2009, 2008 and 2007 is as follows:
2009 2008 2007
Outstanding at beginning of year . . . ............................ 1,830 1,194 738
Granted ............................................... 631 696 537
Forfeited ............................................... (52) (60) (81)
Vested ................................................ (770) — —
Outstanding at end of year ................................... 1,639 1,830 1,194
Weighted average grant-date fair value:
Granted ............................................... $22.31 27.10 28.74
Forfeited ............................................... $26.53 24.31 22.89
Vested ................................................ $19.06 — —
Outstanding at end of year ................................. $26.22 24.15 23.12
Stock Performance Awards granted during 2009 and 2008 include 116 and 100 shares related to the 2007
and 2006 awards, respectively, reflecting an increase in the ultimate amount of the awards 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 2009 and 2008.
During 2009, 2008 and 2007, the Company recognized $15,361, $17,422 and $11,122, 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 of the underlying common stock at the dates of grant and are
being amortized over the three fiscal years ended December 2011, December 2010, and December 2009 for
the 2009, 2008 and 2007 awards, respectively. At December 27, 2009, the amount of total unrecognized
compensation cost related to these awards is approximately $13,339 and the weighted average period over
which this will be expensed is 19 months.
Total compensation expense related to stock options and the Stock Performance Awards for the years
ended December 27, 2009, December 28, 2008 and December 30, 2007 was $27,779, $33,300 and $28,229,
respectively, and was recorded as follows:
2009 2008 2007
Cost of sales ........................................... $ 462 471 374
Research and product development .......................... 2,205 2,551 1,937
Selling, distribution and administration ....................... 25,112 30,278 25,918
27,779 33,300 28,229
Income tax benefit ...................................... 9,009 11,794 9,359
$18,770 21,506 18,870
69
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)