Common stock, capital shares reserved for future issuance (in shares)

[Table of Contents](#i3d0ebbc4e2a2420f98ed7e6fe698936a_7) HASBRO, INC. AND SUBSIDIARIESNotes to Consolidated Financial Statements — (Continued)  
(15)    Stock Options, Other Stock Awards and WarrantsThe Company has reserved 11.3 million shares of its common stock for issuance upon exercise of options and other awards granted or to be granted under stock incentive plans for employees and for non-employee members of the Board of Directors (collectively, the “plans”). These awards generally vest and are expensed in equal annual amounts over three to five years. The plans provide that options be granted at exercise prices not less than the market value of the underlying common stock on the date the option is granted and options and share awards are adjusted for such changes as stock splits and stock dividends. Options are exercisable for periods of no more than seven years after date of grant. Upon exercise in the case of stock options, grant in the case of restricted stock or vesting in the case of performance based contingent stock and restricted stock unit grants, shares are issued out of available treasury shares. The Company’s current plan permits the granting of awards in the form of stock, stock appreciation rights, stock awards and cash awards in addition to stock options.Total compensation expense related to stock options, restricted stock units, including those awards made to non-employee members of its Board of Directors, and stock performance awards for the years ended December 26, 2021, December 27, 2020 and December 29, 2019 was $97.8 million, $49.7 million and $28.0 million, respectively, and was recorded as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions) | 2021 |  | 2020 |  | 2019 |
|  |  |  |  |  |  |
| Product development | $ | 3.7  |  |  | 3.3  |  |  | 3.3  |  |
| Selling, distribution and administration (a)(b) | 94.1  |  |  | 46.4  |  |  | 24.7  |  |
|  | 97.8  |  |  | 49.7  |  |  | 28.0  |  |
| Income tax benefit | 10.2  |  |  | 5.3  |  |  | 3.6  |  |
|  | $ | 87.6  |  |  | 44.4  |  |  | 24.4  |  |

(a)The 2021 increase in compensation expense reflects $20.9 million of additional expense associated with the contractual accelerated vesting of certain equity awards as a result of the passing of the Company's former CEO.(b)The 2020 increase in compensation expense was due to additional stock options, restricted stock units, and stock performance awards granted to eligible participants as a result of the eOne acquisition.The following table represents total stock compensation expense, net of performance adjustments, by award type related to stock performance awards, restricted stock units, stock options and awards made to non-employee members of the Company’s Board of Directors, for the years ended December 26, 2021, December 27, 2020 and December 29, 2019:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions) | 2021 |  | 2020 |  | 2019 |
| Stock performance awards | $ | 26.9  |  |  | 8.4  |  |  | (1.6) |  |
| Restricted stock units | 50.9  |  |  | 28.5  |  |  | 18.7  |  |
| Stock options | 18.4  |  |  | 11.0  |  |  | 9.1  |  |
| Non-employee awards | 1.6  |  |  | 1.8  |  |  | 1.8  |  |
|  | 97.8  |  |  | 49.7  |  |  | 28.0  |  |
| Income tax benefit | 10.2  |  |  | 5.3  |  |  | 3.6  |  |
|  | $ | 87.6  |  |  | 44.4  |  |  | 24.4  |  |

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