Mattel 2012 Annual Report Download - page 94

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Restricted Stock Units
RSUs are valued at the market value on the date of grant and the expense is evenly attributed to the periods
in which the restrictions lapse, which is three years from the date of grant.
Compensation expense recognized related to grants of RSUs was $35.3 million, $30.7 million, and $34.2
million in 2012, 2011, and 2010, respectively, and is included within other selling and administrative expenses.
Income tax benefits related to RSU compensation expense recognized in the consolidated statements of
operations during 2012, 2011, and 2010 totaled $9.6 million, $9.0 million, and $10.3 million, respectively.
The following table summarizes the number and weighted average grant date fair value of Mattel’s unvested
RSUs during the year:
2012 2011 2010
Shares
Weighted
Average
Grant Date
Fair Value Shares
Weighted
Average
Grant Date
Fair Value Shares
Weighted
Average
Grant Date
Fair Value
(In thousands, except weighted average grant date fair value)
Unvested at January 1 ..................... 3,732 $22.53 4,274 $19.49 4,449 $19.36
Granted ............................ 1,417 34.43 1,663 26.38 1,643 21.58
Vested ............................. (1,479) 19.96 (1,740) 19.01 (1,598) 21.45
Forfeited ........................... (165) 26.47 (465) 21.53 (220) 18.17
Unvested at December 31 .................. 3,505 $28.24 3,732 $22.53 4,274 $19.49
At December 31, 2012, RSUs expected to vest totaled 3.3 million shares, with a weighted average grant date
fair value of $28.15. The total grant date fair value of RSUs vested during 2012, 2011, and 2010 was $29.5
million, $33.1 million, and $34.3 million, respectively.
In addition to the expense and share amounts described above, Mattel recognized compensation expense of
$14.2 million and $8.3 million during 2012 and 2011, respectively, for Performance RSUs granted in connection
with its January 1, 2011–December 31, 2013 LTIP, as more fully described in “Note 4 to the Consolidated
Financial Statements—Employee Benefit Plans.” Mattel recognized compensation expense of $19.6 million
during 2010 for Performance RSUs granted in connection with its January 1, 2008–December 31, 2010 LTIP,
also more fully described in “Note 4 to the Consolidated Financial Statements—Employee Benefit Plans.”
Income tax benefits related to Performance RSU compensation expense recognized in the consolidated
statements of operations during 2012, 2011, and 2010 totaled $5.2 million, $3.1 million, and $7.4 million,
respectively.
Note 8—Earnings Per Share
Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend
equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings
per share pursuant to the two-class method. Certain of Mattel’s RSUs are considered participating securities
because they contain nonforfeitable rights to dividend equivalents.
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