Time Magazine 2011 Annual Report Download - page 109

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Restricted Stock Units and Target Performance Stock Units
The following table summarizes information about unvested RSUs and target PSUs as of December 31,
2011:
Number of
Shares/Units
Weighted-
Average
Grant Date
Fair Value
(thousands)
Unvested as of December 31, 2010 ................................. 16,723 $ 25.25
Granted ...................................................... 5,291 36.26
Vested ....................................................... (3,779) 33.73
Forfeited ...................................................... (926) 25.32
Unvested as of December 31, 2011 ................................. 17,309 26.76
As of December 31, 2011, the intrinsic value of unvested RSUs and target PSUs was $626 million. Total
unrecognized compensation cost related to unvested RSUs and target PSUs as of December 31, 2011, without
taking into account expected forfeitures, was $183 million and is expected to be recognized over a weighted-
average period between one and two years. The fair value of RSUs that vested during the years ended
December 31, 2011, 2010 and 2009 was $117 million, $95 million and $76 million, respectively. The fair value
of PSUs that vested during 2011, 2010, and 2009 was $10 million, $12 million, and $2 million respectively.
For the year ended December 31, 2011, the Company granted 5.1 million RSUs at a weighted-average grant
date fair value per RSU of $36.00. For the year ended December 31, 2010, the Company granted 5.7 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 4.7 million RSUs at a weighted-average grant date fair value per RSU of $22.34.
For the year ended December 31, 2011, the Company granted 0.1 million target PSUs at a weighted-average
grant date fair value per PSU of $45.89. 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.
Equity-Based Compensation Expense
Compensation expense recognized for equity-based compensation plans is as follows (millions):
Year Ended December 31,
2011 2010 2009
Stock options ................................................. $ 70 $ 70 $ 74
Restricted stock units and performance stock units ................... 155 129 101
Total impact on Operating Income ................................ $ 225 $ 199 $ 175
Tax benefit recognized ......................................... $ 82 $ 76 $ 67
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 after 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
95