Snapple 2013 Annual Report Download - page 107

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
97
RESTRICTED STOCK UNITS
The table below summarizes RSU activity for the year ended December 31, 2013. The fair value of restricted stock units is
determined based on the number of units granted and the grant date price of common stock.
RSUs
Weighted
Average Grant
Date Fair
Value
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic Value
(in millions)
Outstanding as of January 1, 2013 2,431,103 $ 35.36 1.18 $ 108
Granted 690,010 43.83
Vested and released (841,635) 32.02 37
Forfeited (140,335) 39.24
Outstanding as of December 31, 2013 2,139,143 39.15 1.12 104
The total fair value of RSUs vested for the years ended December 31, 2013, 2012 and 2011 was $27 million, $24 million and
$21 million, respectively. The aggregate intrinsic value of the RSUs vested and released for the years ended December 31, 2012
and 2011 was $59 million and $33 million, respectively. As of December 31, 2013, there was $34 million of unrecognized
compensation cost related to unvested RSUs granted under the DPS stock plans that is expected to be recognized over a weighted
average period of 1.12 years.
During the year ended December 31, 2013, 841,635 shares subject to previously granted RSUs vested. A majority of these
vested stock awards were net share settled. The Company withheld 264,291 shares based upon the Company's closing stock price
on the vesting date to settle the employees' minimum statutory obligation for the applicable income and other employment taxes.
Subsequently, the Company remitted the required funds to the appropriate taxing authorities.
Total payments for the employees' tax obligations to the relevant taxing authorities were $13 million for the year ended
December 31, 2013 and are reflected as a financing activity within the consolidated statements of cash flows. The payments were
used for tax withholdings related to the net share settlements of RSUs and dividend equivalent units. The payments had the effect
of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued on the vesting
date and were recorded as a reduction of additional paid-in capital.
PERFORMANCE SHARE UNITS
In 2011, the Compensation Committee of the Board approved a PSU plan. Each PSU is equivalent in value to one share of
the Company's common stock. PSUs will vest three years from the beginning date of a pre-determined performance period to the
extent the Company has met two performance criteria during the performance period: (i) the percentage growth of net income and
(ii) the percentage yield from operating free cash flow.