Callaway 2012 Annual Report Download - page 110

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Restricted Stock Units
Restricted stock units awarded under the 2004 Plan and the 2001 Directors Plan are recorded at the
Company’s closing stock price on the date of grant. Restricted stock units generally vest at the end of a three year
period. In 2012, 2011 and 2010, the weighted average grant-date fair value of restricted stock units granted was
$6.36, $7.01 and $7.64, respectively. The Company recorded $1,556,000, $1,799,000 and $3,126,000 of
compensation expense related to restricted stock units, in 2012, 2011 and 2010, respectively. The table below is a
roll-forward of the activity for restricted stock units during the 12 months ended December 31, 2012 (in
thousands, except fair value amounts):
Restricted Stock Units Units
Weighted-
Average
Grant-Date
Fair Value
Nonvested at January 1, 2012 ................................................... 624 $7.62
Granted ..................................................................... 393 6.36
Vested ...................................................................... (354) 7.61
Forfeited .................................................................... (16) 7.22
Nonvested at December 31, 2012 ................................................ 647 $6.87
At December 31, 2012, there was $2,132,000 of total unrecognized compensation expense related to
nonvested restricted stock units granted to employees under the Company’s share-based payment plans. That cost
is expected to be recognized over a weighted-average period of 1.53 years. The amount of unrecognized
compensation expense noted above does not necessarily represent the amount that will ultimately be realized by
the Company in its consolidated statement of operations.
Phantom Stock Units
Phantom stock units (“PSUs”) awarded under the 2004 Plan are a form of share-based award that are
indexed to the Company’s stock and are settled in cash. Because PSUs are settled in cash, compensation expense
recognized over the vesting period will vary based on changes in fair value. Fair value is remeasured at the end of
each interim reporting period based on the closing price of the Company’s stock. PSUs vest at the end of a three
year period.
The weighted average grant-date fair value per share of PSUs granted to employees during the years ended
December 31, 2012 and 2011 was $6.37 and $7.51, respectively. The Company did not grant PSUs in 2010.
The table below is a roll-forward of the activity for phantom stock units during the 12 months ended
December 31, 2012 (in thousands, except fair value amounts):
Phantom Stock Units Units
Weighted-
Average
Grant-Date
Fair Value
Nonvested at January 1, 2012 ................................................... 721 $7.68
Granted ..................................................................... 401 6.37
Vested ...................................................................... (389) 7.79
Forfeited .................................................................... (225) 7.22
Nonvested at December 31, 2012 ................................................ 508 $6.77
In connection with these awards, the Company recognized compensation expense of $1,724,000, $2,095,000
and $3,801,000 for the years ended December 31, 2012, 2011 and 2010, respectively. Accrued compensation
expense for PSUs was $1,324,000 at December 31, 2012, which was included in long-term incentive
compensation and other in the accompanying consolidated balance sheet. At December 31, 2011, the Company
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