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Long-Term Incentive Compensation
3 Months Ended
Mar. 30, 2014
Long-Term Incentive Compensation [Abstract]  
Long-Term Incentive Compensation

 

 

11.      LONG-TERM INCENTIVE COMPENSATION    

 

In December 2001, the Company adopted the Appvion, Inc. Long-Term Incentive Plan (“LTIP”). Effective January 3, 2010, the Company adopted a long-term restricted stock unit plan ("RSU"). Both plans utilize phantom units. The value of a unit in the LTIP is based on the change in the fair market value of PDC’s common stock under the terms of the employee stock ownership plan (the “ESOP”) between the grant date and the exercise date. The value of a unit in the RSU is based on the value of PDC common stock, as determined by the ESOP trustee. All units under both the LTIP and RSU plans will vest immediately, and cash payment will be made, upon a change in control as defined in the plans.

 

During first quarter 2014, 108,650 additional units were granted under the RSU plan. Due to terminations of employment, 925 unvested units were forfeited during the current year quarter. A balance of 323,850 RSU units remains as of March 30, 2014. Approximately $0.3 million of expense, related to this plan, was recorded during each of the three-month periods ended March 30, 2014 and March 31, 2013. During the first three months of 2014, 210,650 additional units were granted under the LTIP plan. Approximately $0.4 million of expense was recovered during the three-month period ending March 30, 2014. Expense of approximately $0.2 million was recorded during the three-month period ended March 31, 2013.

 

Beginning in 2006, the Company established a nonqualified deferred compensation agreement with each of its non-employee directors. There was no expense recorded for this plan during the three months ended March 30, 2014 and approximately $0.1 million was recorded as plan expense for the three-month period ended March 31, 2013.