Paychex 2012 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2012 Paychex annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 94

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94

PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Other information pertaining to RSUs is as follows:
Year ended May 31,
In millions, except per share amounts 2012 2011 2010
Total intrinsic value of RSUs vested .................................. $11.0 $7.7 $4.8
Total grant-date fair value of RSUs vested ............................. $ 9.5 $8.5 $6.6
Restricted stock awards: The Board has approved grants of restricted stock awards to the Company’s
officers and outside directors. All shares underlying awards of restricted stock are restricted in that they are not
transferable until they vest. The recipients of the restricted stock have voting rights and earn dividends, which are
paid to the recipient at the time of vesting of the awards. If the recipient leaves Paychex prior to the vesting date
for any reason, the shares of restricted stock and the dividends accrued on those shares will be forfeited and
returned to Paychex.
For restricted stock awards granted to officers prior to July 2010, the shares vest upon the fifth anniversary
of the grant date provided the recipient is still an employee of the Company on that date. These awards have a
provision for the acceleration of vesting based on achievement of performance targets established by the Board.
If the established targets are met for a fiscal year, up to one-third of the award may vest. If all the targets are met
for three consecutive years, the award will be fully vested. Beginning in July 2010, time-vested restricted stock
awards were granted to officers, which vest one-third per annum over three years. For grants to outside directors
prior to October 2010, the shares vest on the third anniversary of the grant date. Beginning in October 2010,
restricted stock granted to outside directors vest on the one-year anniversary of the grant date. The fair value of
restricted stock awards is equal to the closing market price of the underlying common stock as of the date of
grant and is expensed over the requisite service period on a straight-line basis.
The following table summarizes restricted stock activity for the three years ended May 31, 2012:
In millions, except per share amounts
Restricted
shares
Weighted-average
grant-date
fair value per
share
Nonvested as of May 31, 2009 ................................. 0.2 $36.74
Granted .................................................. 0.2 $24.60
Vested ................................................... — $35.79
Forfeited ................................................. — $32.66
Nonvested as of May 31, 2010 ................................. 0.4 $31.95
Granted .................................................. 0.1 $26.40
Vested ................................................... (0.1) $35.60
Forfeited ................................................. (0.1) $30.02
Nonvested as of May 31, 2011 ................................. 0.3 $29.88
Granted .................................................. 0.1 $30.69
Vested ................................................... (0.1) $32.02
Forfeited ................................................. (0.1) $29.36
Nonvested as of May 31, 2012 ................................. 0.2 $29.35
The total grant-date fair value of restricted stock vested was $3.2 million, $2.2 million, and $0.3 million for
fiscal years 2012, 2011, and 2010, respectively.
48