E-Z-GO 2011 Annual Report Download - page 84

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Restricted Stock Units
Restricted stock unit awards generally were payable in shares of common stock (vesting one-third each in the third, fourth and fifth
year following the year of the grant), until the first quarter of 2009, when we began issuing restricted stock units settled in cash
(vesting in equal installments over five years). In 2011, we issued restricted stock units settled in both cash and stock (vesting in
equal installments over five years). Since 2008, all restricted stock units have been issued with the right to receive dividend
equivalents. For restricted stock units paid in stock that were issued prior to 2008, the fair value is based on the trading price of
our common stock on the grant date, less required adjustments to reflect the fair value of the awards as dividends are not paid or
accrued on these units until the restricted stock units vest. For restricted stock units paid in cash and stock that were issued in 2008
and later, the fair value of these units is based solely on the trading price of our common stock on the grant date. The 2011 activity
for restricted stock units 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
762
$ 47.55
3,472
$ 14.60
Granted
373
25.27
695
26.05
Vested
(393)
(47.36)
(863)
(13.94)
Forfeited
(104)
(42.14)
(377)
(15.94)
Outstanding at end of year, nonvested
638
$ 35.53
2,927
$ 17.33
Performance Share Units
The fair value of share-based compensation awards accounted for as liabilities includes performance share units, which are
typically paid in cash in the first quarter of the year following vesting. Payouts under performance share units vary based on
certain performance criteria generally measured over a three-year period. The performance share units vest at the end of three
years. 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
2011 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
1,897
$ 9.59
Granted
445
26.25
Vested
(1,250)
(5.65)
Forfeited
(233)
(13.23)
Outstanding at end of year, nonvested
859
$ 22.98
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)
2011
2010
2009
Subject only to service conditions:
Value of shares, options or units vested
$ 41
$ 31
$ 42
Intrinsic value of cash awards paid
23
13
1
Subject to performance vesting conditions:
Value of units vested
33
11
21
Intrinsic value of cash awards paid
1
5
10
Intrinsic value of amounts paid under DIP
1
9
1
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 December 31, 2011, we had not recognized $45
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 2.2 years.
73
Textron Inc. Annual Report • 2011 73