MasterCard 2012 Annual Report Download - page 113

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Restricted Stock Units
The following table summarizes the Company’s RSU activity for the year ended December 31, 2012:
Units
Weighted-Average
Grant-Date Fair
Value
Weighted-Average
Remaining
Contractual Term
Aggregate
Intrinsic
Value
(in thousands) (in years) (in millions)
Outstanding at January 1, 2012 . . 614 $217
Granted ..................... 165 $422
Converted ................... (215) $163
Forfeited/expired ............. (19) $273
Outstanding at December 31,
2012 ..................... 545 $298 1.2 $268
RSUs vested and expected to vest
at December 31, 2012 ........ 528 $300 1.3 $259
The fair value of each RSU is the closing stock price on the New York Stock Exchange of the Company’s
Class A common stock on the date of grant. The weighted-average grant-date fair value of RSUs granted during
the years ended December 31, 2012, 2011 and 2010 was $422, $257 and $231, respectively. Upon vesting, a
portion of the RSU award may be withheld to satisfy the minimum statutory withholding taxes. The remaining
RSUs will be settled in shares of the Company’s Class A common stock after the vesting period. The total
intrinsic value of RSUs converted into shares of Class A common stock during the years ended December 31,
2012, 2011 and 2010 was $91 million, $4 million and $234 million, respectively. As of December 31, 2012, there
was $74 million of total unrecognized compensation cost related to non-vested RSUs. The cost is expected to be
recognized over a weighted-average period of 1.8 years.
Performance Stock Units
The following table summarizes the Company’s PSU activity for the year ended December 31, 2012:
Units
Weighted-Average
Issue-Date Fair
Value1
Weighted-Average
Remaining
Contractual Term
Aggregate
Intrinsic
Value
(in thousands) (in years) (in millions)
Outstanding at January 1, 2012 . . 151 $203
Issued ...................... 26 $391
Converted ................... (64) $158
Forfeited/expired ............. — $—
Outstanding at December 31,
2012 ..................... 113 $272 0.9 $56
PSUs vested and expected to vest
at December 31, 2012 ........ 111 $272 0.9 $54
1Grant date is not established until the performance terms are fixed and the ultimate number of shares to be
issued is determined.
The weighted-average issue-date fair value of PSUs issued during the years ended December 31, 2012, 2011
and 2010 was $391, $224 and $219, respectively.
109