This excerpt taken from the HBI 10-Q filed Nov 13, 2006.
Stock Unit Awards
Restricted stock units (RSUs) of Hanesbrands stock are granted to certain Company employees and non-employee directors to incent performance and retention over periods ranging from one to three years. Upon the achievement of defined goals, the RSUs are converted into shares of the Companys common stock on a one-for-one basis and issued to the grantees. All RSUs vest solely upon continued future service to the Company. The cost of these awards is determined using the fair value of the shares on the date of grant, and compensation expense is recognized over the period during which the grantees provide the requisite service to the Company. A summary of the changes in the restricted stock unit awards outstanding under the Hanesbrands OIP during the quarter ended September 30, 2006 is presented below:
As of September 30, 2006, the Company had unrecognized compensation expense related to stock unit awards of $34,284.
Notes to Condensed Combined and Consolidated Financial Statements (Continued)
(dollars and shares in thousands, except per share data)
For all share-based payments under the Hanesbrands OIP, during the quarter ended September 30, 2006 the Company recognized total compensation expense of $314 and recognized a tax benefit of $122. The Company satisfies the requirement for common shares for share-based payments to employees by issuing newly authorized shares.