Mattel 2010 Annual Report Download - page 91

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The following table summarizes the number and weighted average grant date fair value of Mattel’s unvested
RSUs during the year:
2010 2009 2008
Shares
Weighted
Average
Grant Date
Fair Value Shares
Weighted
Average
Grant Date
Fair Value Shares
Weighted
Average
Grant Date
Fair Value
(In thousands, except weighted average grant date fair value)
Unvested at January 1 ..................... 4,449 $19.36 3,927 $21.03 3,452 $20.38
Granted ............................. 1,643 21.58 2,113 17.41 1,873 20.09
Vested .............................. (1,598) 21.45 (1,408) 20.96 (990) 16.91
Forfeited ............................ (220) 18.17 (183) 20.53 (408) 21.16
Unvested at December 31 .................. 4,274 $19.49 4,449 $19.36 3,927 $21.03
At December 31, 2010, total RSUs expected to vest totaled 4.1 million shares, with a weighted average
grant date fair value of $19.41. The total grant date fair value of RSUs vested during 2010, 2009, and 2008
totaled $34.3 million, $29.5 million, and $16.7 million, respectively.
In addition to the expense and share amounts described above, Mattel recognized compensation expense of
$19.6 million, $5.3 million, and $1.5 million during 2010, 2009, and 2008, respectively, for performance RSUs
granted in connection with its January 1, 2008–December 31, 2010 Long-Term Incentive Program, as more fully
described in “Note 6 to the Consolidated Financial Statements—Employee Benefit Plans.” Income tax benefits
related to performance RSU compensation expense recognized in the consolidated statements of operations
during 2010, 2009, and 2008 totaled $7.4 million, $2.0 million, and $0.6 million, respectively.
Note 10— Earnings Per Share
Effective January 1, 2009, Mattel adopted ASC 260-10 (formerly FASB Staff Position (“FSP”) Emerging
Issues Task Force No. 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions
Are Participating Securities). Unvested share-based payment awards that contain nonforfeitable rights to
dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the
computation of earnings per share pursuant to the two-class method. Certain of Mattel’s RSUs are considered
participating securities because they contain nonforfeitable rights to dividend equivalents. The retrospective
application of this standard reduced previously reported basic and diluted earnings per share for 2008 by $0.01.
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