Raytheon 2010 Annual Report Download - page 105

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The ultimate award, which is determined at the end of each of the three-year performance cycles, can range from zero to
200% of the target award and also includes dividend equivalents, which are not included in the table below.
Compensation expense for the awards is recognized over the performance period based upon the value determined under
the intrinsic value method for the CFCF and ROIC portions of the award and the Monte Carlo simulation method for the
TSR portion of the award using historic volatility. Compensation expense for the CFCF and ROIC portions of the awards
will be adjusted based upon the expected achievement of those performance goals.
LTPP activity related to the expected units was as follows:
(Unit amounts in thousands) Units
Weighted-Average
Grant Date
Fair Value
Outstanding at December 31, 2007 1,407 $ 45.99
Granted 365 74.80
Increase 664 55.24
Vested (359) 38.33
Forfeited (43) 59.60
Outstanding at December 31, 2008 2,034 55.24
Granted 495 46.04
Decrease (21) (11.60)
Vested (811) 46.04
Forfeited (36) 63.07
Outstanding at December 31, 2009 1,661 57.65
Granted 439 55.74
Decrease (194) 56.21
Vested (746) 53.33
Forfeited (88) 53.39
Outstanding at December 31, 2010 1,072 $ 50.34
The increase (decrease) above relates to changes in the amount of expected awards as achievement is measured against
performance goals.
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