Time Magazine 2010 Annual Report Download - page 105

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For the year ended December 31, 2010, the Company granted 6 million RSUs at a weighted-average grant date
fair value per RSU of $27.21. For the year ended December 31, 2009, the Company granted 5 million RSUs at a
weighted-average grant date fair value per RSU of $22.34. For the year ended December 31, 2008, the Company
granted 4 million RSUs at a weighted-average grant date fair value per RSU of $44.49.
For the year ended December 31, 2010, the Company granted 0.2 million target PSUs at a weighted-average
grant date fair value per PSU of $30.65. For the year ended December 31, 2009, the Company granted 0.2 million
target PSUs at a weighted-average grant date fair value per PSU of $23.67. For the year ended December 31, 2008,
the Company granted 0.4 million target PSUs at a weighted-average grant date fair value per PSU of $52.59.
Equity-Based Compensation Expense
Compensation expense recognized for equity-based compensation plans is as follows (millions):
2010 2009 2008
Years Ended December 31,
Stock options .......................................... $ 70 $ 74 $ 96
Restricted stock units and performance stock units .............. 129 101 96
Total impact on Operating Income .......................... $ 199 $ 175 $ 192
Tax benefit recognized ................................... $ 76 $ 67 $ 73
13. BENEFIT PLANS
Retirement Plan Amendments
In March 2010, the Company’s Board of Directors approved amendments to its domestic defined benefit
pension plans. Pursuant to the amendments, (i) effective June 30, 2010, benefits provided under the plans stopped
accruing for additional years of service and the plans were closed to new hires and employees with less than one
year of service and (ii) after December 31, 2013, pay increases will no longer be taken into consideration when
determining a participating employee’s benefits under the plans.
Effective July 1, 2010, the Company increased its matching contributions for eligible participants in the
Company’s domestic defined contribution plan (“Time Warner Savings Plan”). Effective January 1, 2011, the
Company has implemented a supplemental savings plan that provides for similar Company matching for eligible
participant deferrals above the Internal Revenue Service compensation limits that apply to the Time Warner Savings
Plan up to $500,000 of eligible compensation.
In December 2010, amendments to the U.K. defined benefit pension plans were approved. Pursuant to the
amendments, beginning in April 2011, benefits provided under the plans will stop accruing for additional years of
service. Pay increases will continue to be taken into consideration when determining a participating employee’s
benefits under the plans. In addition, matching contributions under a defined contribution plan will be provided to
eligible U.K. employees.
93
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)