Twenty-First Century Fox 2011 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2011 Twenty-First Century Fox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

Notes to the Consolidated Financial Statements (continued)
satisfaction of one or more pre-established objective performance measures that shall be determined by the Compensation Committee. In addition,
certain executives, who are not named executive officers of the Company, responsible for various business units within the Company received a
grant of PSUs in fiscal 2011. The terms of the awards are similar to the awards issued to the executive directors, except that the awards are settled
in shares of News Corporation’s Class A Common Stock.
The PSUs were awarded under the Company’s 2005 Long-Term Incentive Plan. In fiscal 2011, a total of 1.8 million target PSUs were issued
under this program. At the end of the three year performance period, the final number of PSUs will be determined and such PSUs will be awarded
and vested at that time.
The following table summarizes the activity related to the Company’s RSUs to be settled in stock:
Fiscal 2011 Fiscal 2010 Fiscal 2009
Restricted
stock units
Weighted average
grant-date fair value
Restricted
stock units
Weighted average
grant-date fair value
Restricted
stock units
Weighted average
grant-date fair value
(RSUs in thousands)
Unvested restricted stock units at beginning of
the year 10,803 $13.43 13,941 $15.46 11,302 $18.01
Granted 10,850 13.25 5,147 10.03 9,971 13.04
Vested(1) (8,569) 14.20 (7,711) 14.86 (6,950) 16.03
Cancelled (456) 13.22 (574) 13.05 (382) 16.54
Unvested restricted stock units at the end of the
year 12,628 $12.76 10,803 $13.43 13,941 $15.46
(1) The fair value of the Company’s RSUs that vested during the fiscal years ended June 30, 2011, 2010 and 2009 was approximately $117 million, $86 million and $93 million, respectively.
News Corporation 2004 Stock Option Plan and 2004 Replacement Stock Option Plan
As a result of the Company’s reorganization in November 2004, 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 Company’s reorganization in November 2004, 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 year ended June 30, 2009, the Company granted
approximately 1,103,000 stock options under this scheme. The Company did not grant any stock options under this scheme in fiscal 2011 and
2010.
64 News Corporation