harris corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The fair value of each restricted stock unit, which can be distributed in cash or shares, is equal to the most
probable estimate of intrinsic value at the time of distribution and is amortized to compensation expense over the
vesting period. At July 1, 2011, we had 101,400 restricted stock units outstanding, all of which were payable in
shares.
A summary of the status of our restricted stock and restricted stock units at July 1, 2011 and changes during
fiscal 2011 is as follows:
Shares
Weighted-
Average
Grant
Price
Per Share
Restricted stock and restricted stock units outstanding at July 2, 2010 ........... 590,248 $42.61
Restricted stock and restricted stock units granted ......................... 470,550 $44.73
Restricted stock and restricted stock units vested .......................... (129,476) $51.46
Restricted stock and restricted stock units forfeited ......................... (117,475) $43.97
Restricted stock and restricted stock units outstanding at July 1, 2011 ........... 813,847 $42.23
As of July 1, 2011, there was $19.1 million of total unrecognized compensation cost related to restricted stock
and restricted stock unit awards under our SIPs. This cost is expected to be recognized over a weighted-average
period of 1.64 years. The weighted-average grant date price per share of restricted stock and per unit of restricted
stock units granted during fiscal 2011, 2010 and 2009 was $44.73, $36.45 and $50.57, respectively. The total fair
value of restricted stock and restricted stock units that vested during fiscal 2011, 2010 and 2009 was approximately
$6.7 million, $8.3 million and $5.1 million, respectively.
Performance Share Awards
The following information relates to awards of performance shares and performance share units that have been
granted to employees under our SIPs. Generally, performance share and performance share unit awards are subject
to performance criteria such as meeting predetermined operating income and return on invested capital targets (and
total shareholder returns, for such awards granted beginning fiscal 2011) for a three-year performance period. These
awards also generally vest at the expiration of the same three-year period. The final determination of the number of
shares to be issued in respect of an award is determined by our Board of Directors or a committee of our Board of
Directors.
The fair value of each performance share is based on the closing price of our common stock on the date of
grant and is amortized to compensation expense over the vesting period, if achievement of the performance
measures is considered probable. At July 1, 2011, there were 847,627 performance shares outstanding.
The fair value of each performance share unit, which can be distributed in cash or shares, is equal to the most
probable estimate of intrinsic value at the time of distribution and is amortized to compensation expense over the
vesting period, if achievement of the performance measures is considered probable. At July 1, 2011, there were
50,670 performance share units outstanding, all of which were payable in shares.
A summary of the status of our performance shares and performance share units at July 1, 2011 and changes
during fiscal 2011 is as follows:
Shares
Weighted-
Average
Grant
Price
Per Share
Performance shares and performance share units outstanding at July 2, 2010 ...... 979,954 $44.49
Performance shares and performance share units granted .................... 210,348 $44.12
Performance shares and performance share units vested ..................... (237,701) $58.74
Performance shares and performance share units forfeited .................... (54,304) $40.21
Performance shares and performance share units outstanding at July 1, 2011 ...... 898,297 $40.90
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