Discover 2010 Annual Report Download - page 132

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The following table sets forth the activity concerning unvested RSUs during the year ended November 30, 2010:
Number
of Shares
Weighted-Average
Grant-Date
Fair Value
Unvested restricted stock units at November 30, 2009(1) ............................................................................................. 4,575,914 $17.64
Granted.............................................................................................................................................................. 1,353,797 $15.08
Vested................................................................................................................................................................ (2,600,562) $17.93
Forfeited ............................................................................................................................................................. (170,424) $15.65
Unvested restricted stock units at November 30, 2010 ............................................................................................... 3,158,725 $16.41
(1) Unvested restricted stock units represent awards where recipients have yet to satisfy either explicit vesting terms or retirement-eligibility requirements.
Compensation cost associated with restricted stock units is determined based on the number of units granted and the
fair value on the date of grant. The fair value is amortized on a straight-line basis, net of estimated forfeitures over the
requisite service period for each separately vesting tranche of the award. The requisite service period is generally the
vesting period.
The following table summarizes the total intrinsic value of the RSUs converted to common stock and the total grant date
fair value of RSUs vested (dollars in thousands):
For the Years Ended
November 30,
2010 2009 2008
Intrinsic value of RSUs converted to common stock ........................................................................................................ $25,727 $34,868 $21,400
Grant date fair value of RSUs vested........................................................................................................................... $46,620 $64,973 $55,355
Weighted average grant date fair value of RSUs granted............................................................................................... $ 15.08 $ 10.36 $ 15.96
As of November 30, 2010, there was $16.8 million of total unrecognized compensation cost related to non-vested
RSUs. The cost is expected to be recognized over a total period of 3.4 years and a weighted average period of 1.1
years.
Stock Option Activity. The following table sets forth the activity concerning stock option activity during the year ended
November 30, 2010:
Number
of Shares
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic Value
(in thousands)
Options outstanding at November 30, 2009 ........................................................................... 4,287,065 $19.64 3.24
Granted(1) .......................................................................................................................... 0
Exercised........................................................................................................................... (13,182) $14.73
Expired ............................................................................................................................. (361,484) $21.43
Options outstanding at November 30, 2010 ........................................................................... 3,912,399 $19.49 2.52 $2,557
Vested and exercisable at November 30, 2010(2)..................................................................... 3,912,399 $19.49 2.52 $2,557
(1) No stock options have been granted by the Company since its spin-off from Morgan Stanley.
(2) Includes 111,916 shares that vested during fiscal year 2010 with a grant date fair value of $26.91.
Cash received from the exercise of stock options was $194 thousand and the income tax benefit realized from the
exercise of stock options was $72 thousand for the year ended November 30, 2010.
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