Hasbro 2013 Annual Report Download - page 88

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HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)
respectively. Each Stock Performance Award has a target number of shares of common stock associated with
such award which may be earned by the recipient if the Company achieves the stated diluted earnings per share
and revenue targets. The ultimate amount of the award may vary, depending on actual results. Awards may vary
from 0% to 200% of the target number of shares.
Furthermore, on October 2012, as part of an Amended and Restated Employment Agreement, Stock
Performance Awards awarded to the Company’s Chief Executive Officer in 2013 may be adjusted at the time of
vesting dependent on the Company’s total shareholder return compared to Standard & Poor’s 500 return for the
applicable performance period. This additional adjustment will vary from 75% to 200%.
Information with respect to Stock Performance Awards for 2013, 2012 and 2011 is as follows:
2013 2012 2011
Outstanding at beginning of year ................................. 1,019 1,627 1,878
Granted ................................................... 358 695 456
Forfeited .................................................. (101) (144) (86)
Cancelled ................................................. (333) (682) —
Vested .................................................... — (477) (621)
Outstanding at end of year ...................................... 943 1,019 1,627
Weighted average grant-date fair value:
Granted ................................................... $47.21 36.14 45.66
Forfeited .................................................. $40.24 37.54 32.53
Cancelled ................................................. $45.66 33.76 —
Vested .................................................... $ — 22.31 27.10
Outstanding at end of year ...................................... $40.24 39.57 33.52
Stock Performance Awards granted during 2011 include 23 shares related to the 2009 awards, reflecting an
increase in the ultimate amount of the awards issued based on the Company’s actual results during the
performance period. These shares are excluded from the calculation of the weighted average grant-date fair value
of Stock Performance Awards granted during 2011. Shares cancelled in 2013 and 2012 represent the cancellation
of the Stock Performance Awards granted during 2011 and 2010, respectively, based on the minimum targets for
these awards not being met.
During 2013, 2012 and 2011, the Company recognized $815, $3,628 and $(3,558), respectively, of (income)
expense relating to these awards. Awards are valued at the market value of the underlying common stock at the
dates of grant and are expensed over the performance period. On a periodic basis the Company reviews the actual
and forecasted performance of the Company against the stated targets for each award. The total expense is
adjusted upward or downward based on the expected amount of shares to be issued as defined in the agreement.
If minimum targets as detailed under the award are not met, no additional compensation expense will be
recognized and any previously recognized compensation expense will be reversed. In the fourth quarter of 2013
and 2011, it was determined that it was no longer probable that the minimum targets would be met for certain
Stock Performance Awards grants and, as a result, all previously recognized expense totaling $7,046 and
$16,332, respectively, related to these awards was reversed. At December 29, 2013, the amount of total
unrecognized compensation cost related to these awards is approximately $13,350 and the weighted average
period over which this will be expensed is 24 months.
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