Radio Shack 2011 Annual Report Download - page 65

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Restricted Stock Plan: The 2007 Restricted Stock Plan
(“2007 RSP”) permitted the grant of up to 0.5 million shares
of restricted stock to selected officers of the Company, as
determined by the MD&C. This plan was terminated in 2009
upon shareholder approval of the 2009 ISP, and no further
grants may be made under this plan. As of December 31,
2011, approximately 63,000 shares of unvested restricted
stock were outstanding under this plan. Transactions
related to restricted stock awards issued under the 2007
RSP and the 2009 ISP for the year ended December 31,
2011, are summarized as follows:
(In thousands, except
per share amounts)
Shares
Weighted-
Average
Fair Value
Per Share
Non-vested at January 1, 2011 454 $ 14.43
Granted 277 14.68
Vested or released
(1)
(259) 14.79
Canceled or forfeited (65) 13.76
Non-vested at December 31, 2011 407 $ 14.48
(1)
For plan participants age 55 and older, certain granted but unvested
shares are released from the plan for tax withholdings on the
participants’ behalf.
We granted approximately 277,000, 298,000, and 346,000
shares of restricted stock in 2011, 2010 and 2009,
respectively, under these plans.
Restricted stock awards are valued at the market price of a
share of our common stock on the date of grant. In general,
these awards vest at the end of a three-year period from
the date of grant and are expensed on a straight-line basis
over that period, which is considered to be the requisite
service period. This expense totaled $2.9 million, $4.7
million, and $1.8 million for the years ended December 31,
2011, 2010 and 2009, respectively.
The weighted-average grant-date fair value per share of
restricted stock awards granted was $14.68, $19.21 and
$7.05 in 2011, 2010 and 2009, respectively. The total fair
value of restricted stock awards vested was approximately
$3.8 million, $1.7 million and $1.3 million in 2011, 2010 and
2009, respectively.
The compensation cost charged against income for all
stock-based compensation plans was $5.4 million, $9.9
million and $12.1 million in 2011, 2010 and 2009,
respectively. The total income tax benefit recognized for all
stock-based compensation plans was $2.1 million, $2.6
million and $3.9 million in 2011, 2010 and 2009,
respectively. At December 31, 2011, there was $6.8 million
of unrecognized compensation expense related to the
unvested portion of our stock-based awards that is
expected to be recognized over a weighted average period
of 2.19 years.
Deferred Stock Units: In 2004, the stockholders approved
the RadioShack 2004 Deferred Stock Unit Plan for Non-
Employee Directors (“Deferred Plan”), which was amended
in 2008. Under the plan, each non-employee director
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 covered by
an award vest on each of the first three anniversaries of the
date of grant. Vesting of outstanding awards is 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 receive these shares in a
lump sum. We granted approximately 53,000, 29,000, and
45,000 Units in 2011, 2010 and 2009, respectively. The
weighted-average grant-date fair value per Unit granted
was $14.80, $21.75 and $13.97 in 2011, 2010 and 2009,
respectively. There were approximately 277,000 Units
outstanding and 639,000 Units available for grant at
December 31, 2011.
NOTE 8 – EMPLOYEE BENEFIT PLANS
The following benefit plans were in place during the periods
covered by the financial statements.
RadioShack 401(k) Plan: The RadioShack 401(k) Plan
(“401(k) Plan”), a defined contribution plan, was most
recently amended and restated effective July 1, 2010, and
allows a participant to defer, by payroll deductions, from 1%
to 75% of the participant’s annual compensation, limited to
certain annual maximums set by the Internal Revenue
Code. The 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 the participant’s
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 according to the investment elections
made by the participant for the participant’s own
contributions. Company contributions to the 401(k) Plan
were $5.6 million, $6.2 million and $6.6 million for 2011,
2010 and 2009, respectively.
Supplemental Executive Retirement Plan: Prior to
January 1, 2006, certain officers of the Company were
participants in RadioShack’s Salary Continuation Plan
(“SCP”) or its Deferred Compensation Plan (“DCP” and,
together with the SCP, the “Plans”), which provided a
defined benefit to be paid out over a ten-year period upon
retirement between the ages of 55 and 70. Participation in