Petsmart 2009 Annual Report Download - page 70

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Restricted stock activity in our restricted stock plan is as follows (in thousands):
Shares
Weighted-Average
Grant Date
Fair Value Shares
Weighted-Average
Grant Date
Fair Value Shares
Weighted-Average
Grant Date
Fair Value
Year Ended 2009 (52 weeks) Year Ended 2008 (52 weeks) Year Ended 2007 (53 weeks)
Nonvested at beginning
of year ........... 2,685 $25.50 2,391 $27.92 2,380 $24.33
Granted ............ 82 $18.05 978 $19.33 886 $31.39
Vested ............. (599) $28.58 (367) $24.85 (448) $16.15
Forfeited ........... (270) $24.29 (317) $25.48 (427) $27.44
Nonvested at end of
year ............. 1,898 $24.38 2,685 $25.50 2,391 $27.92
The total fair value of restricted stock which vested during 2009, 2008 and 2007 was $11.0 million,
$7.2 million, and $14.1 million, respectively.
Performance Share Units
The 2009 Performance Share Unit Program, approved by the Board of Directors in January 2009, provides for
the issuance of performance share units, or “PSUs,” under the 2006 Equity Incentive Plan to executive officers and
certain other members of our management team based upon an established performance goal. For units granted in
2009, the performance goal was defined as a specified end-of-year net cash balance. The actual number of PSUs
awarded to each participant was set at a minimum threshold of 50% of his or her target number of PSUs, regardless
of performance results, and could increase up to 150% based upon performance results. Our actual performance
against the end-of-year net cash target was approved by the Board in March 2010, and qualified participants
received 150% of their target awards. The PSUs are subject to time-based vesting, cliff vesting on the third
anniversary of the initial grant date, and will settle in shares at that time.
Activity for PSUs in 2009 was as follows (in thousands):
Shares
Weighted-
Average
Grant Date
Fair Value
Year Ended 2009
(52 weeks)
Nonvested at beginning of year .................................... — —
Granted ...................................................... 592 16.96
Vested ....................................................... — —
Forfeited . . . .................................................. (22) 16.69
Nonvested at end of year ......................................... 570 16.97
Management Equity Units
Beginning in 2009, certain members of management receive Management Equity Units or “MEUs.” The value
of one MEU is equal to the value of one share of our common stock and cliff vests on the third anniversary of the
grant date. The payout value of the vested MEU grant will be determined using our closing stock price on the vest
date and will be paid out in cash.
F-22
PetSmart, Inc. and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)