Cash America 2011 Annual Report Download - page 149

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
118
Restricted Stock Units - The Company has granted RSUs to Company officers, certain employees and to the non-
management members of the Board of Directors. The Company began granting RSUs in 2003. RSUs granted in
December 2003 and January 2004 were granted under the 1994 Plan; subsequent RSUs have been granted under the
2004 Plan. Each vested RSU entitles the holder to receive a share of the common stock of the Company. For
Company officers and certain employees, the vested RSUs are to be issued upon vesting or, for certain awards, upon
termination of employment with the Company. For members of the Board of Directors, vested RSUs will be issued
upon the director’s separation from the Board with respect to awards granted prior to 2011, and for awards granted
during 2011, upon the earlier of vesting or separation from the Board if certain requirements have been satisfied. At
December 31, 2011, the outstanding RSUs granted to Company officers and certain employees had original vesting
periods ranging from one to 15 years. For executive officers of the Company, a portion of these annual grants vest over
time and a portion of these annual grants vest subject to the Company’s achievement of certain performance
objectives. With respect to the RSU’s granted to members of the Board of Directors, one-fourth of the RSUs vest on
each of the first four grant date anniversaries, except that after the 360th day following the grant date, any unvested
RSUs for directors who have served on the Board of Directors for five or more years will automatically become fully
vested if such director’s service with the Board of Directors is terminated. For purposes of ASC 718-10-30,
Compensation – Stock Compensation – Overall – Initial Measurement, the grant date fair value of RSUs is based on
the Company’s closing stock price on the day before the grant date, and the grant date fair value of performance RSUs
is based on the maximum amount of the award expected to be achieved, which the Company estimated as the most
probable outcome at the time of grant. The awards granted to the Company’s executive officers in 2010 and 2011
contain clawback provisions. The amount attributable to RSU grants is amortized to expense over the vesting periods.
Compensation expense related to RSUs totaling $4.9 million ($3.1 million net of related taxes), $3.8 million
($2.4 million net of related taxes) and $3.2 million ($2.0 million net of related taxes) was recognized for 2011, 2010
and 2009, respectively. Total unrecognized compensation cost related to RSUs at December 31, 2011 was $9.5
million, which will be recognized over a weighted average vesting period of approximately 2.5 years.
The following table summarizes the RSU activity during 2011, 2010 and 2009:
Year Ended December 31,
2011 2010 2009
Weighted Weighted Weighted
Average Average Average
Fair Value Fair Value Fair Value
at Date of at Date of at Date of
Units Grant Units Grant Units Grant
Outstanding at beginning of year 596,648 $ 25.78 546,876 $ 22.77 490,737 $ 25.74
Units granted 200,819 40.15 162,552 35.70 185,639 18.05
Shares issued (82,982) 28.10 (85,676) 25.26 (118,550) 27.22
Units forfeited (3,894) 34.44 (27,104) 26.25 (10,950) 27.48
Outstanding at end of year 710,591 $ 29.53 596,648 $ 25.78 546,876 $ 22.77
Units vested at end of year 244,897 $ 24.03 222,529 $ 23.20 192,987 $ 22.71
The outstanding RSUs had an aggregate intrinsic value of $33.1 million and the outstanding vested RSUs had
an aggregate intrinsic value of $11.4 million at December 31, 2011.