Hasbro 2013 Annual Report Download - page 87

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HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)
In October 2012, as part of an Amended and Restated Employment Agreement, the Company’s Chief
Executive Officer was awarded 587 shares to be granted in two tranches across 2013 and 2014. As of May 2013,
both tranches met the accounting definition for grant date and, as such, are being expensed from 2013 through
2017. The expense related to 2013 is included in the aforementioned recognized and unrecognized compensation
costs related to restricted stock units. 468 shares of this award are considered granted in 2013 and included in the
table below. The remaining shares were granted in February 2014. These awards provide the recipient with the
ability to earn shares of the Company’s common stock based on the Company’s achievement of four stated stock
price hurdles and continued employment through December 31, 2017. At the completion of the service period,
the recipient will receive one quarter of the award for each stock price hurdle achieved after April 24, 2013. The
four stock price hurdles are $45, $52, $56 and $60 which must be met for a period of at least thirty days using the
average closing price over such period.
The Company used a Monte Carlo simulation valuation model to determine the fair value of these awards.
The following inputs were used in the simulation that resulted in an average grant date fair value for this award
of $35.56:
Inputs
Grant date stock price ......................................................... $47.28
Stock price volatility ......................................................... 26.12%
Risk-free interest rate ......................................................... 0.65%
Dividend yield .............................................................. 3.38%
Excluding the aforementioned award for 468 shares, information with respect to the remaining Restricted
Stock Awards and Restricted Stock Units for 2013, 2012 and 2011 is as follows:
2013 2012 2011
Outstanding at beginning of year ................................. 296 232 196
Granted ................................................... 451 92 97
Forfeited .................................................. (44) (27) (3)
Vested .................................................... (1) (1) (58)
Outstanding at end of year ...................................... 702 296 232
Weighted average grant-date fair value:
Granted ................................................... $45.16 36.01 39.81
Forfeited .................................................. $40.40 40.80 40.98
Vested .................................................... $33.62 32.90 34.61
Outstanding at end of year ...................................... $43.10 39.53 41.06
Of the shares vested in 2011, the receipt of 58 shares has been deferred to the date upon which the recipient
is no longer employed by the Company.
Stock Performance Awards
In 2013, 2012 and 2011, as part of its annual equity grant to executive officers and certain other employees,
the Company issued contingent stock performance awards (the “Stock Performance Awards”). These awards
provide the recipients with the ability to earn shares of the Company’s common stock based on the Company’s
achievement of stated cumulative diluted earnings per share and cumulative net revenue targets over the three
fiscal years ended December 2015, December 2014, and December 2013 for the 2013, 2012 and 2011 awards,
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