E-Z-GO 2009 Annual Report Download - page 84

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Textron Inc.
Activity for restricted stock units paid in stock is as follows:
Weighted-
Average
Number of Grant Date
(Shares in thousands) Shares Fair Value
Outstanding at beginning of year, nonvested 2,441 $ 43.83
Vested (962) 39.87
Forfeited (329) 45.24
Outstanding at end of year, nonvested 1,150 $ 46.74
Share-Based Compensation Awards
The value of the share-based compensation awards that vested and/or were paid during the respective periods is as follows:
(In millions) 2009 2008 2007
Subject only to service conditions:
Value of shares, options or units vested $ 42 $ 47 $ 38
Intrinsic value of cash awards paid 1 10 10
Subject to performance vesting conditions:
Value of units vested 21 10 46
Intrinsic value of cash awards paid 10 40 42
Intrinsic value of amounts paid under DIP 1 3 4
As of January 2, 2010, we had not recognized $50 million of total compensation cost associated with unvested awards subject only to service
conditions. We expect to recognize compensation expense for these awards over a weighted-average period of approximately
two years.
The fair value of share-based compensation awards accounted for as liabilities includes performance share units, retention awards, restricted
stock units payable in cash and DIP stock unit awards. The fair value of these awards is based on the trading price of our common stock, less
adjustments to reflect the fair value of certain awards for which dividends are not paid or accrued until vested, and is remeasured at each reporting
period date.
Note 14. Retirement Plans
Our defined benefit and defined contribution plans cover substantially all of our employees. A significant number of our U.S.-based employees
participate in the Textron Retirement Plan, which is designed to be a “floor-offset” arrangement with both a defined benefit component and a
defined contribution component. The defined benefit component of the arrangement includes the Textron Master Retirement Plan (TMRP) and the
Bell Helicopter Textron Master Retirement Plan (BHTMRP), and the defined contribution component is the Retirement Account Plan (RAP). The
defined benefit component provides a minimum guaranteed benefit (or “floor” benefit). Under the RAP, participants are eligible to receive
contributions from Textron of 2% of their eligible compensation but may not make contributions to the plan. Upon retirement, participants receive
the greater of the floor benefit or the value of the RAP. Both the TMRP and the BHTMRP are subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
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