Twenty-First Century Fox 2007 Annual Report Download - page 94

NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
The following table summarizes the activity related to the Company’s RSUs to be settled in stock:
Fiscal 2007 Fiscal 2006
(Shares in thousands)
Restricted
stock
units
Weighted
average
grant-
date
fair value
Restricted
stock
units
Weighted
average
grant-
date
fair value
Unvested restricted stock units at beginning of the year 12,861 $15.37 — $ —
Granted 1,317 19.28 13,187 15.38
Vested (3,632) 15.82 (125) 16.93
Cancelled (493) 15.74 (201) 15.24
Unvested restricted stock units at the end of the year 10,053 $15.70 12,861 $15.37
In fiscal 2007, a group of executives responsible for various business units within the Company had the opportunity to earn a grant
of RSUs under the 2005 Plan. These fiscal 2007 awards (the “fiscal 2007 LTIP”) were conditioned upon the attainment of
pre-determined operating profit goals for fiscal 2007 by the executive’s particular business unit. If the actual fiscal 2007 operating
profit of the executive’s business unit as compared to its pre-determined target operating profit was within a certain performance
goal range, the executive was entitled to receive a grant of RSUs under the fiscal 2007 LTIP. To the extent that it was determined
that the business unit’s actual fiscal 2007 operating profit fell within the performance goal range, the executive received a percent-
age of his or her annualized base salary, ranging from 0% to 100%, in time-vested RSUs representing shares of our Class A Common
Stock. The RSUs are generally payable in shares of Class A Common Stock. In fiscal 2008, approximately 3.9 million RSUs were
issued in connection with these fiscal 2007 LTIP awards, twenty-five percent of which vested on August 15, 2007. The remaining
balance will vest in three equal annual installments over the next three years, subject to the individual’s continued employment with
the Company.
News Corporation 2004 Stock Option Plan and 2004 Replacement Stock Option Plan
As a result of the Reorganization, all preferred limited voting ordinary shares which the Company issued stock options over were
cancelled and holders received in exchange stock options for shares of Class A Common Stock on a one-for-two basis with no
change in the original terms under the News Corporation 2004 Stock Option Plan and 2004 Replacement Stock Option Plan
(collectively, the “2004 Plan”). In addition, all other outstanding stock options to purchase preferred limited voting ordinary shares
were adjusted to be exercisable into shares of Class A Common Stock subject to the one-for-two share exchange. Prior to the
Reorganization, stock options were granted to employees with Australian dollar exercise prices.
Under the 2004 Plan, equity grants generally vest over a four-year period and expire ten years from the date of grant. The
equity awards were granted with exercise prices that are equal to or exceed the market price at the date of grant and were valued,
in Australian dollars. The 2004 Plan automatically terminates in 2014.
Other
The Company operates employee share ownership schemes in the United Kingdom and Ireland. These plans enable employees to
enter into fixed-term savings contracts with independent financial institutions linked to an option for Class A Common Stock. The
savings contracts can range from three to seven years with an average expected life of four years. During the fiscal years ended
June 30, 2007, 2006 and 2005, the Company granted approximately 256,000, 341,000 and 1.4 million stock options under this
scheme, respectively.
NEWS CORPORATION 2007 Annual Report 93