Tyson Foods 2015 Annual Report Download - page 74
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Please find page 74 of the 2015 Tyson Foods 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.AsofOctober3,2015,wehad$45millionoftotalunrecognizedcompensationcostrelatedtostockoptionplansthatwillberecognizedoveraweightedaverage
periodof1.4years.
RestrictedStock
Weissuerestrictedstockatthemarketvalueasofthedateofgrant,withrestrictionsexpiringoverperiodsthroughfiscal2018.Unearnedcompensationis
recognizedoverthevestingperiodfortheparticulargrantusingastraight-linemethod.
NumberofShares
Weighted
AverageGrant-
DateFairValue
PerShare
WeightedAverage
Remaining
ContractualLife
(inYears)
Aggregate
IntrinsicValue
(inmillions)
Nonvested,September27,2014 938,944
$ 23.18
Granted 742,036
42.39
Dividends 11,431
34.99
Vested (520,964)
20.28
Forfeited (63,519)
36.61
Nonvested,October3,2015 1,107,928
$ 36.76
1.6
$ 49
AsofOctober3,2015,wehad$24millionoftotalunrecognizedcompensationcostrelatedtorestrictedstockawardsthatwillberecognizedoveraweighted
averageperiodof2.1years.
Werecognizedstock-basedcompensationexpenserelatedtorestrictedstock,netofincometaxes,of$9million,$6millionand$5millionforfiscal2015,2014
and2013,respectively.Therelatedtaxbenefitforfiscal2015,2014and2013was$6million,$4millionand$3million,respectively.Wehad0.5million,0.6
millionand1.4millionrestrictedstockawardsvestinfiscal2015,2014and2013,respectively,withagrantdatefairvalueof$10million,$11millionand$20
million,respectively.
Performance-BasedShares
Weawardperformance-basedsharesofourClassAstocktocertainseniorexecutives.Theseawardsaretypicallygrantedonceayear.Performance-basedshares
vestbaseduponthepassageoftimeandtheachievementofperformanceormarketperformancecriteria,rangingfrom0%to200%,asdeterminedbythe
CompensationCommitteepriortothedateoftheaward.Vestingperiodsfortheseawardsaregenerallythreeyears.Wereviewprogresstowardtheattainmentof
theperformancecriteriaeachquarterduringthevestingperiod.Whenitisprobabletheminimumperformancecriteriaforanawardwillbeachieved,webegin
recognizingtheexpenseequaltotheproportionateshareofthetotalfairvalueoftheClassAstockpriceonthegrantdate.Thetotalexpenserecognizedoverthe
durationofperformanceawardswillequaltheClassAstockpriceonthedateofgrantmultipliedbythenumberofsharesultimatelyawardedbasedonthelevelof
attainmentoftheperformancecriteria.Forgrantswithmarketperformancecriteria,thefairvalueisdeterminedonthegrantdateandiscalculatedusingthesame
inputsforexpectedvolatility,expecteddividendyield,andrisk-freerateasstockoptions,notedabove,withadurationofthreeyears.Thetotalexpense
recognizedoverthedurationoftheawardwillequalthefairvalue,regardlessifthemarketperformancecriteriaismet.
Thefollowingtablesummarizestheperformance-basedsharesatthemaximumawardamountsbasedupontherespectiveperformanceshareagreements.Actual
sharesthatwillvestdependonthelevelofattainmentoftheperformance-basedcriteria.
NumberofShares
Weighted
AverageGrant-
DateFairValue
PerShare
WeightedAverage
Remaining
ContractualLife
(inYears)
Aggregate
IntrinsicValue
(inmillions)
Nonvested,September27,2014 1,403,603
$ 26.77
Granted 522,746
46.16
Vested (25,922)
17.36
Forfeited (65,327)
37.98
Nonvested,October3,2015 1,835,100
$ 32.03
0.9
$ 81
Werecognizedstock-basedcompensationexpenserelatedtoperformanceshares,netofincometaxes,of$5million,$4millionand$2millionforfiscal2015,
2014and2013,respectively.Therelatedtaxbenefitforfiscal2015,2014and2013was$3million,$2millionand$2million,respectively.AsofOctober3,
2015,wehad$11millionoftotalunrecognizedcompensationbaseduponourprogresstowardtheattainmentofcriteriarelatedtoperformance-basedshareawards
thatwillberecognizedoveraweightedaverageperiodof1.7years.
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