Time Magazine 2014 Annual Report Download - page 108

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
The following table summarizes information about unvested RSUs and target PSUs as of December 31, 2014:
Number of
Shares/Units
Weighted-
Average
Grant Date
Fair Value
Aggregate
Intrinsic
Value
(thousands) (thousands)
Unvested as of December 31, 2013 ........................... 14,566 $ 40.31
Granted(a) ................................................ 2,960 66.44
Vested .................................................. (5,882) 34.82
Forfeited ................................................ (1,035) 42.96
Adjustment due to the Time Separation(b) ...................... 500
Unvested as of December 31, 2014(b) .......................... 11,109 48.68 $ 948,897
(a) Includes 2.7 million RSUs and 0.2 million target PSUs granted during 2014 and a payout adjustment of 0.1 million PSUs due to the actual performance
level achieved for PSUs granted in 2011 that vested during 2014.
(b) The weighted-average grant date fair value of the RSUs and target PSUs included in the line item “Adjustment due to the Time Separation” is equal to
the weighted-average grant date fair value of the awards at their respective grant date divided by a factor of approximately 1.04. The weighted-average
grant date fair value of the unvested RSUs and target PSUs as of December 31, 2014 reflect the Adjustment.
The following table sets forth the total intrinsic value of RSUs and target PSUs that vested during the following years
(millions):
Year Ended December 31,
2014 2013 2012
RSUs ................................................... $ 366 $ 291 $ 177
PSUs ................................................... 17 27 11
Equity-Based Compensation Expense
The impact on Operating income for equity-based compensation awards is as follows (millions):
Year Ended December 31,
2014 2013 2012
(recast) (recast)
Stock options ............................................ $ 26 $ 33 $ 45
RSUs and PSUs .......................................... 193 205 150
Total impact on operating income ............................ $ 219 $ 238 $ 195
Tax benefit recognized ..................................... $ 76 $ 78 $ 66
Total unrecognized compensation cost related to unvested Time Warner stock option awards as of December 31, 2014,
without taking into account expected forfeitures, is $47 million and is expected to be recognized over a weighted-average
period between one and two years. Total unrecognized compensation cost related to unvested RSUs and target PSUs as of
December 31, 2014, without taking into account expected forfeitures, is $182 million and is expected to be recognized over a
weighted-average period between one and two years.
13. BENEFIT PLANS
Retirement Plan Amendments
Effective after June 30, 2010, the Company’s domestic defined benefit pension plans were closed to new hires and
employees with less than one year of service, and participating employees stopped accruing additional years of service for
purposes of determining the benefits provided by the plans (though crediting years of service for purposes of vesting and
92