Radio Shack 2010 Annual Report Download - page 68

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58
Restricted Stock Plan: The 2007 Restricted Stock Plan
(“2007 RSP”) permitted the grant of up to 0.5 million shares
of restricted stock to selected officers of the company, as
determined by the MD&C. This plan was terminated in 2009
upon shareholder approval of the 2009 ISP, and no further
grants may be made under this plan. Transactions related
to restricted stock awards issued under the 2007 RSP and
the 2009 ISP for the year ended December 31, 2010, are
summarized as follows:
(In thousands, except
per share amounts)
Shares
Weighted-
Average
Fair Value
Per Share
Non-vested at January 1, 2010 353 $ 9.99
Granted 298 19.21
Vested or released
(1)
(191) 13.68
Canceled or forfeited (6) 14.90
Non-vested at December 31, 2010 454 $ 14.43
(1)
For plan participants age 55 and older, certain granted but unvested
shares are released from the plan for tax withholdings on the
participants’ behalf.
We granted approximately 298,000, 346,000, and 158,000
shares of restricted stock in 2010, 2009 and 2008,
respectively, under these plans.
Restricted stock awards are valued at the market price of a
share of our common stock on the date of grant. In general,
these awards vest at the end of a three-year period from
the date of grant and are expensed on a straight-line basis
over that period, which is considered to be the requisite
service period. This expense totaled $4.7 million, $1.8
million, and $1.5 million for the years ended December 31,
2010, 2009 and 2008, respectively.
The weighted-average grant-date fair value per share of
restricted stock awards granted was $19.21, $7.05 and
$18.15 in 2010, 2009 and 2008, respectively. The total fair
value of restricted stock awards vested was approximately
$1.7 million, $1.3 million and $1.1 million in 2010, 2009 and
2008, respectively.
The compensation cost charged against income for all
stock-based compensation plans was $9.9 million, $12.1
million and $12.8 million in 2010, 2009 and 2008,
respectively. The total income tax benefit recognized for all
stock-based compensation plans was $2.6 million, $3.9
million and $3.4 million in 2010, 2009 and 2008,
respectively. At December 31, 2010, there was $4.0 million
of unrecognized compensation expense related to the
unvested portion of our stock-based awards that is
expected to be recognized over a weighted average period
of 1.2 years.
Deferred Stock Units: In 2004, the stockholders approved
the RadioShack 2004 Deferred Stock Unit Plan for Non-
Employee Directors (“Deferred Plan”). The Deferred Plan
replaced the one-time and annual stock option grants to non-
employee directors (“Directors”) as specified in the 1997,
1999 and 2001 ISPs. New Directors received a one-time
grant of 5,000 deferred stock units (“Units”) on the date
they attended their first Board meeting. The Deferred Plan
also specified that each Director who had served one year
or more as of June 1 of any year would automatically be
granted 3,500 Units on the first business day of June of
each year in which he or she served as a Director.
In February 2007, the Board of Directors amended the
Deferred Plan to provide that, in lieu of the original amounts
described above, each non-employee director now receives
a one-time initial grant of units equal to the number of
shares of our common stock that represent a fair market
value of $150,000 on the grant date, and an annual grant of
units equal to the number of shares of our common stock
that represent a fair market value of $105,000 on the
annual grant date.
Under the Deferred Plan, one-third of the Units vest annually
over three years from the date of grant. Vesting of
outstanding awards is accelerated under certain
circumstances. At termination of service, death, disability or
change in control of RadioShack, Directors will receive
shares of common stock equal to the number of vested
Units. Directors may receive these shares in a lump sum or
they may defer receipt of these shares in equal installments
over a period of up to ten years. We granted approximately
29,000, 45,000, and 59,000 Units in 2010, 2009 and 2008,
respectively. The weighted-average grant-date fair value
per Unit granted was $21.75, $13.97 and $14.24 in 2010,
2009 and 2008, respectively. There were approximately
211,000 Units outstanding and 705,000 Units available for
grant at December 31, 2010.