Memorex 2010 Annual Report Download - page 65

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Restricted Stock
The following table summarizes our restricted stock activity:
Restricted
Stock
Weighted
Average
Grant Date
Fair Value
Per Share
Nonvested as of December 31, 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207,229 $38.52
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206,261 24.05
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80,219) 37.85
Forfeited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,760) 37.61
Nonvested as of December 31, 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,511 $28.98
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327,654 9.38
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (119,074) 29.44
Forfeited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51,389) 30.04
Nonvested as of December 31, 2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461,702 $14.84
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524,655 10.45
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (209,302) 15.17
Forfeited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (37,859) 11.15
Nonvested as of December 31, 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739,196 $11.34
Of the restricted shares granted during the year ended December 31, 2010, there were 265,837 performance-based
restricted shares granted based on the Company’s performance against operating income targets for 2010. Operating
income (as defined under the 2010 Annual Bonus Plan) exceeded specified levels; therefore, the full grant will vest
25 percent per year over four years from the date of grant.
The total fair value of shares vested during the years 2010, 2009 and 2008 was $3.2 million, $3.5 million and
$3.0 million, respectively.
Total related stock-based compensation expense recognized in the Consolidated Statements of Operations for the
years ended December 31, 2010, 2009 and 2008 was $3.1 million, $2.6 million and $3.1 million before income taxes,
respectively. The related tax benefit was $1.2 million, $1.0 and $1.2 million for the years ended December 31, 2010, 2009
and 2008, respectively. These tax benefits were included in the U.S. deferred tax assets that were subject to the valuation
allowance established during 2010. No related stock-based compensation was capitalized as part of an asset for the years
ended December 31, 2010, 2009, or 2008. As of December 31, 2010, there was $6.2 million of total unrecognized
compensation expense related to restricted stock granted under our Stock Plans. That expense is expected to be
recognized over a weighted average period of 2.76 years.
Note 9 — Retirement Plans
Pension Plans
We have various non-contributory defined benefit pension plans covering substantially all United States employees
and certain employees outside the United States. Total pension expense was $4.5 million, $15.1 million and $10.2 million
in 2010, 2009 and 2008, respectively. Total pension expense reduced year over year due to pension settlements of
$2.5 million and $11.7 million during 2010 and 2009, respectively, as well as pension curtailments of $0.3 million in 2010.
The measurement date of our pension plans is December 31. We expect to contribute approximately $10 million to
$15 million to our pension plans in 2011. It is our general practice, at a minimum, to fund amounts sufficient to meet the
requirements set forth in applicable benefits laws and local tax laws. From time to time, we contribute additional amounts,
as we deem appropriate.
62
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)