Twenty-First Century Fox 2008 Annual Report Download - page 110

NEWSCORP
Notes to the Consolidated Financial Statements (continued)
The following table summarizes the activity related to the Company’s RSUs to be settled in stock (RSUs in thousands):
Fiscal 2008 Fiscal 2007 Fiscal 2006
Restricted
stock units Weighted average grant-date fair value Restricted stock units Weighted average grant-date fair value Restricted stock units Weighted average grant-date fair value
(Shares in thousands)
Unvested restricted stock units at
beginning of the year 10,053 $15.70 12,861 $ 15.37 — $ —
Granted (1) 6,161 21.16 1,317 19.28 13,187 15.38
Vested (4,421) 17.23 (3,632) 15.82 (125) 16.93
Cancelled (491) 17.28 (493) 15.74 (201) 15.24
Unvested restricted stock units at the end
of the year 11,302 $18.01 10,053 $15.70 12,861 $15.37
(1) Includes 357,000 stock settled RSUs issued as a result of the acquisition of Dow Jones. See Note 3—Acquisitions, Disposals and Other
Transactions.
In fiscal 2007 and 2008, a group of executives responsible for various business units within the Company had the opportunity to earn a grant
of RSUs under the 2005 Plan. These awards (the “LTIP”) were conditioned upon the attainment of pre-determined operating profit goals for fiscal
2007 and 2008 by the executive’s particular business unit. If the actual fiscal 2007 and 2008 operating profit of the executive’s business unit as
compared to its pre-determined target operating profit for the fiscal year was within a certain performance goal range, the executive was entitled
to receive a grant of RSUs under the LTIP. To the extent that it was determined that the business unit’s actual fiscal 2007 or 2008 operating profit
fell within the performance goal range for that fiscal year, the executive received a percentage of his or her annualized base salary, ranging from
0% to 100%, in time-vested RSUs representing shares of our Class A Common Stock. The RSUs are generally payable in shares of Class A Common
Stock. In fiscal 2008, approximately 3.9 million RSUs were issued in connection with these fiscal 2007 LTIP awards, fifty percent of which vested
as of August 15, 2008. The remaining balance will vest in two equal annual installments, subject to the individual’s continued employment with
the Company. In fiscal 2009, approximately 7.3 million RSUs were issued in connection with these fiscal 2008 LTIP awards, twenty-five percent of
which will vest on August 15, 2008. The remaining balance will vest in three equal annual installments, subject to the individual’s continued
employment with the Company.
News Corporation 2004 Stock Option Plan and 2004 Replacement Stock Option Plan
As a result of the Company’s reorganization in November 2004, all preferred limited voting ordinary shares which the Company issued stock
options over were cancelled and holders received in exchange stock options for shares of Class A Common Stock on a one-for-two basis with no
change in the original terms under the News Corporation 2004 Stock Option Plan and 2004 Replacement Stock Option Plan (collectively, the “2004
Plan”). In addition, all other outstanding stock options to purchase preferred limited voting ordinary shares were adjusted to be exercisable into
shares of Class A Common Stock subject to the one-for-two share exchange. Prior to the Company’s reorganization in November 2004, stock
options were granted to employees with Australian dollar exercise prices.
Under the 2004 Plan, equity grants generally vest over a four-year period and expire ten years from the date of grant. The equity awards were
granted with exercise prices that are equal to or exceed the market price at the date of grant and were valued, in Australian dollars. The 2004 Plan
automatically terminates in 2014.
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