E-Z-GO 2010 Annual Report Download - page 83

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71
The 2010 activity for restricted stock units payable in stock and for restricted stock units payable in cash is provided below:
Units Payable in Stock
Units Payable in Cash
(Shares in thousands)
Number of
Shares
Weighted-
Average Grant
Date Fair Value
Number of
Shares
Weighted-
Average Grant
Date Fair Value
Outstanding at beginning of year, nonvested
1,290
$ 46.02
2,498
$ 8.65
Granted
—
—
1,904
20.23
Vested
(447)
(42.92)
(568)
(7.38)
Forfeited
(81)
(48.75)
(362)
(14.48)
Outstanding at end of year, nonvested
762
$ 47.55
3,472
$ 14.60
Performance Share Units
The fair value of share-based compensation awards accounted for as liabilities includes performance share units. 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. The 2010 activity for our
performance share units is as follows:
(Shares in thousands)
Number of
Shares
Weighted-
Average Grant
Date Fair
Value
Outstanding at beginning of year, nonvested
1,664
$ 13.82
Granted
513
20.21
Vested
(280)
(54.17)
Outstanding at end of year, nonvested
1,897
$ 9.59
Cash payments based on approximately 273,000 performance share units will be paid out during the first quarter of 2011 in settlement
of the 280,000 units that vested in 2010.
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)
2010
2009
2008
Subject only to service conditions:
Value of shares, options or units vested
$ 31
$ 42
$ 47
Intrinsic value of cash awards paid
13
1
10
Subject to performance vesting conditions:
Value of units vested
11
21
10
Intrinsic value of cash awards paid
5
10
40
Intrinsic value of amounts paid under DIP
9
1
3
Compensation cost for awards subject only to service conditions that vest ratably are recognized on a straight-line basis over the
requisite service period for each separately vesting portion of the award. As of January 1, 2011, we had not recognized $48 million of
total compensation costs 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 2.1 years.
Note 13. 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). Effective on January 1, 2010, the Textron Retirement Plan was closed to new participants. Employees hired after January
1, 2010 will receive an additional 4% annual cash contribution to their Textron Savings Plan account based on their eligible
compensation.