Paychex 2011 Annual Report Download - page 64

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The following table summarizes restricted stock activity for the three years ended May 31, 2011:
In millions, except per share amounts
Restricted
shares
Weighted-average
grant-date
fair value
per share
Nonvested as of May 31, 2008 .............................. 0.2 $41.48
Granted .............................................. 0.1 $31.76
Vested ............................................... (0.1) $39.82
Forfeited ............................................. — $36.81
Nonvested as of May 31, 2009 .............................. 0.2 $36.74
Granted .............................................. 0.2 $24.60
Vested ............................................... — $35.79
Forfeited ............................................. — $32.66
Nonvested as of May 31, 2010 .............................. 0.4 $31.95
Granted .............................................. 0.1 $26.40
Vested ............................................... (0.1) $35.60
Forfeited ............................................. (0.1) $30.02
Nonvested as of May 31, 2011 .............................. 0.3 $29.88
Restricted stock units: Beginning in July 2007, the Board approved grants of restricted stock units (“RSUs”)
to non-officer management as a replacement of non-qualified stock options. RSUs do not have voting rights or earn
dividend equivalents during the vesting period. These awards vest 20% per annum over five years with a small
population of awards vesting on the fourth anniversary of the grant date. The fair value of RSUs is equal to the
closing market price of the underlying common stock as of the date of grant, adjusted for the present value of
expected dividends over the vesting period.
The following table summarizes RSU activity for the three years ended May 31, 2011:
In millions, except per share amounts RSUs
Weighted-average
grant-date
fair value
per share
Nonvested as of May 31, 2008 ................................. 0.4 $40.60
Granted ................................................. 0.6 $28.30
Vested .................................................. (0.1) $40.60
Forfeited ................................................ — $34.65
Nonvested as of May 31, 2009 ................................. 0.9 $32.93
Granted ................................................. 0.6 $20.62
Vested .................................................. (0.2) $34.01
Forfeited ................................................ (0.1) $28.88
Nonvested as of May 31, 2010 ................................. 1.2 $27.39
Granted ................................................. 0.6 $21.52
Vested .................................................. (0.3) $28.96
Forfeited ................................................ (0.1) $25.08
Nonvested as of May 31, 2011 ................................. 1.4 $24.83
48
PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)