Black & Decker 2012 Annual Report Download - page 95

81
Total compensation expense recognized for RSU’s amounted to $34.8 million, $33.1 million and $52.7 million, in 2012, 2011
and 2010 respectively. The actual tax benefit received in the period the shares were delivered was $3.7 million, $3.8 million
and $0.3 million in 2012, 2011 and 2010, respectively. As of December 29, 2012, unrecognized compensation expense for
RSU’s amounted to $52.9 million and this cost will be recognized over a weighted-average period of 4.1 years.
A summary of non-vested restricted stock unit and award activity as of December 29, 2012, and changes during the twelve
month period then ended is as follows:
Restricted Share
Units & Awards
Weighted Average
Grant
Date Fair Value
Non-vested at January 1, 2012…………………………………………………...
2,373,108 $ 57.52
Granted…………………………………………………………………………... 445,958 70.30
Vested……………………………………………………………………………. (523,902) 72.20
Forfeited…………………………………………………………………………. (68,226) 71.66
Non-vested at December 29, 2012………………………………………………. 2,226,938 $ 61.73
The total fair value of shares vested (market value on the date vested) during 2012, 2011 and 2010 was $37.8 million, $32.8
million and $14.9 million, respectively.
Non-employee members of the Board of Directors received restricted share-based grants which must be cash settled and
accordingly mark-to-market accounting is applied. Additionally, the Board of Directors were granted restricted share units for
which compensation expense of $1.1 million was recognized for 2012 and 2011, and $0.9 million was recognized for 2010.
Long-Term Performance Awards: The Company has granted Long Term Performance Awards (“LTIPs”) under its 1997,
2001 and 2009 Long Term Incentive Plans to senior management employees for achieving Company performance measures.
Awards are payable in shares of common stock, which may be restricted if the employee has not achieved certain stock
ownership levels, and generally no award is made if the employee terminates employment prior to the payout date.
Long-Term Performance Awards: LTIP grants were made in 2010, 2011 and 2012. Each grant has separate annual performance
goals for each year within the respective three year performance period. Earnings per share and return on capital employed
represent 75% of the share payout of each grant. There is a third market-based element, representing 25% of the total grant,
which measures the Company’s common stock return relative to peers over the performance period. The ultimate delivery of
shares will occur in 2013, 2014 and 2015 for the 2010, 2011 and 2012 grants, respectively. Total payouts are based on actual
performance in relation to these goals.
Working capital incentive plan: In 2010, the Company initiated a bonus program under its 2009 Long Term Incentive Plan. The
program provides executives the opportunity to receive stock in the event certain working capital turn objectives are achieved
by June of 2013 and are sustained for a period of at least six months. The ultimate issuances of shares, if any, will be
determined based on achievement of objectives during the performance period.
Expense recognized for the various performance-contingent grants amounted to $7.3 million in 2012, $9.2 million in 2011, and
$10.1 million in 2010. With the exception of the market-based award, in the event performance goals are not met compensation
cost is not recognized and any previously recognized compensation cost is reversed.
A summary of the activity pertaining to the maximum number of shares that may be issued is as follows:
Share Units
Weighted Average
Grant
Date Fair Value
Non-vested at January 1, 2012…………………………………………………….. 1,357,899 $
46.14
Granted…………………………………………………………………………….. 274,614 74.86
Vested……………………………………………………………………………… (411,329) 30.37
Forfeited…………………………………………………………………………… (136,265) 38.89
Non-vested at December 29, 2012………………………………………………… 1,084,919 $
60.29