Radio Shack 2008 Annual Report Download - page 75

of restricted stock outstanding under the 1997 ISP and 2007 RSP, and there were 346,500 shares of
restricted stock available for grant under the 2007 RSP.
Deferred Stock Units: In 2004, the stockholders approved the RadioShack 2004 Deferred Stock Unit Plan
for Non-Employee Directors (“Deferred Plan”). The Deferred Plan replaced the one-time and annual stock
option grants to non-employee directors (“Directors”) as specified in the 1997, 1999 and 2001 ISPs. New
Directors received a one-time grant of 5,000 deferred stock units (“Units”) on the date they attend their
first Board meeting. The Deferred Plan also specified that each Director who has served one year or more
as of June 1 of any year will automatically be granted 3,500 Units on the first business day of June of each
year in which he or she serves as a Director.
In February 2007, the board of directors amended the Deferred Plan to provide that, in lieu of the original
amounts described above, each non-employee director now receives a one-time initial grant of units equal
to the number of shares of our common stock that represent a fair market value of $150,000 on the grant
date, and an annual grant of units equal to the number of shares of our common stock that represent a
fair market value of $105,000 on the annual grant date.
Under the Deferred Plan, one-third of the Units vest annually over three years from the date of grant. Vesting
may be accelerated under certain circumstances. At termination of service, death, disability or change in
control of RadioShack, Directors will receive shares of common stock equal to the number of vested
Units. Directors may receive these shares in a lump sum or they may defer receipt of these shares in
equal installments over a period of up to ten years. We granted 62,600, 30,300 and 36,600 Units in 2008,
2007 and 2006, respectively. There were 175,656 Units outstanding and 783,747 Units available for grant
at December 31, 2008.
NOTE 8 – EMPLOYEE BENEFIT PLANS
The following benefit plans were in place during the periods covered by the financial statements
Deferred Compensation Plans: The Executive Deferred Compensation Plan (“EDCP”) and the
Executive Deferred Stock Plan (“EDSP”) became effective in April of 1998 and permitted employees to
defer portions of their base salary, bonuses, and delivery of any restricted stock or stock acquired under a
non-qualified stock option exercise that would otherwise vest.
Employee deferrals and employer contributions to the EDCP and EDSP were discontinued effective January
1, 2007, and any unvested matching company contributions remaining as of December 31, 2006, were
immediately vested. All account balances, including matching company contributions, under these plans
were distributed in the first quarter of 2007. Accruals related to these plans were recorded as a current liability
in our Consolidated Balance Sheets, totaling $27.8 million at December 31, 2006, and were eliminated upon
distribution during the first half of 2007.
RadioShack Investment Plan: Effective June 30, 2006, the Investment Plan was suspended and all
shares held by the Investment Plan were distributed in August 2006. As of December 31, 2008, the
Investment Plan did not hold any assets nor have any employee participants. Our last contributions to the
Investment Plan amounted to $5.6 million in 2006.
RadioShack 401(k) Plan: The RadioShack 401(k) Plan (“401(k) Plan”), a defined contribution plan, was
amended on July 1, 2006, and, as amended, allows a participant to defer, via payroll deductions, from 1% to
75% of their annual compensation, limited to certain annual maximums set by the Internal Revenue Code.
The amended 401(k) Plan also presently provides that our contribution to each participant’s account
maintained under the 401(k) Plan be an amount equal to 100% of the participant’s contributions up to 4%
of their annual compensation. This percentage contribution made by us is discretionary and may change
in the future. Our contributions go directly to the 401(k) Plan and are made in cash and invested in an age
appropriate retirement fund for each participant; however, participants may immediately reinvest our
contribution into other investment alternatives provided by the 401(k) Plan.
(In millions) 2008 2007 2006
401(k) company
contribution $ 7.2 $ 8.0 $ 6.3
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