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USD ($)
USD ($) / shares
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<b><font style="font-family: 'Times New Roman', Times">19. </font></b>
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<b><font style="font-family: 'Times New Roman', Times">Employee
Stock-Based Compensation</font></b>
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On February 24, 2011, the Company granted stock-based
compensation awards under the Amended and Restated 2008 Long
Term Performance Plan (2008 LTPP) in the form of stock options,
restricted stock units and performance units.
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<i>Stock Options.</i> The Company granted 694,805 stock
options with an exercise price equal to the closing price of L-3
Holdings common stock on the date of grant. The options expire
after 10 years from the date of grant and vest ratably over
a three-year period on the annual anniversary of the date of
grant. The weighted average grant date fair value for the
options awarded was $15.54 and was estimated using the
Black-Scholes option-pricing model. The weighted average
assumptions used in the valuation model for this grant are
presented in the table below.
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Expected holding period (in years)
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5.2
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Expected volatility
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26.4
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%
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Expected dividend yield
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2.8
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Risk-free interest rate
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2.2
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%
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<i>Restricted Stock Units.</i> The Company granted 676,422
restricted stock units with a weighted average grant date fair
value of $80.17 per share. Restricted stock units automatically
convert into shares of L-3 Holdings common stock upon vesting,
and are subject to forfeiture until certain restrictions have
lapsed, including a three year cliff vesting period for
employees and a one year cliff vesting period for non-employee
directors, in each case starting on the date of grant.
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<i>Performance Units.</i> The Company granted 81,765
performance units with a weighted average grant date fair value
per unit of $95.50. The payout for these units is based on the
achievement of pre-determined performance goals established by
the compensation committee of the Company’s Board of
Directors for the three-year period ending December 31,
2013. The payout can range from zero to 200% of the original
number of units awarded, which are converted into shares of L-3
Holdings common stock
<font style="white-space: nowrap">and/or</font> an
amount of cash based on the then existing closing price at the
end of the performance period.
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<!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDisclosure of compensation-related costs for share-based compensation which may include disclosure of policies, compensation plan details, allocation of stock compensation, incentive distributions, share-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14
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