Sally Beauty Supply 2011 Annual Report Download - page 121

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Sally Beauty Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
Fiscal Years ended September 30, 2011, 2010 and 2009
The following table presents a summary of the activity for the Company’s restricted stock awards for the
fiscal year ended September 30, 2011:
Weighted
Average
Number of Weighted Remaining
Shares (in Average Fair Vesting Term
Restricted Stock Awards Thousands) Value Per Share (in Years)
Unvested at September 30, 2010 . . . 362 $ 7.38 3.2
Granted ................... 199 11.39
Vested .................... (111) 7.63
Forfeited or expired .......... (5) 6.58
Unvested at September 30, 2011 . . . 445 $ 9.12 3.1
At September 30, 2011, approximately $2.3 million of unrecognized compensation costs related to
unvested restricted stock awards are expected to be recognized over the weighted average period of
3.1 years.
Restricted Stock Units
The Company from time to time grants RSUs which generally vest within one year from the date of grant
pursuant to the 2010 Plan. To date, the Company has only granted RSU awards to its non-employee
directors. RSUs represent an unsecured promise of the Company to issue shares of common stock of the
Company. Upon vesting, such RSUs are generally retained by the Company as deferred stock units that
are not distributed until six months after the independent director’s service as a director terminates. RSUs
are independent of stock option grants and are generally subject to forfeiture if service terminates prior to
the vesting of the units. Participants have no voting rights with respect to unvested RSUs. Under the
2010 Plan, the Company may settle the vested deferred stock units with shares of the Company’s common
stock or in cash.
The Company expenses the cost of services received in exchange of RSUs (which is determined to equal
the fair value of the RSUs at the date of grant) on a straight-line basis over the vesting period (generally
one year). For these purposes, the fair value of the RSU is determined based on the closing price of the
Company’s common stock on the date of grant.
The following table presents a summary of the activity for the Company’s RSUs for the fiscal year ended
September 30, 2011:
Weighted
Average
Number of Weighted Remaining
Shares (in Average Fair Vesting Term
Restricted Stock Units Thousands) Value Per Share (In Years)
Unvested at September 30, 2010 . . . — $ — —
Granted ..................... 43 11.39
Vested ...................... (43) 11.39
Forfeited .................... — —
Unvested at September 30, 2011 . . . — — —
F-21