Coca Cola 2003 Annual Report Download - page 88

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Coca-Cola Company and Subsidiaries
NOTE 13: RESTRICTED STOCK, STOCK OPTIONS AND OTHER STOCK PLANS (Continued)
the minimum award is 399,466 shares if adjusted EPS is at 8 percent. Below 8 percent adjusted EPS growth,
there is no award of restricted shares at the end of the period.
In 2003, 200,000 shares of five-year performance-based restricted stock were cancelled at an average fair
value of $46.88 per share.
In 2002, 50,000 shares of four-year performance-based restricted stock were granted at an average fair value
of $46.88 per share. The release of the shares is subject to the Company’s achievement of a minimum of
11 percent annual growth in earnings per share over the four-year measurement period, as adjusted for certain
items approved by the Board of Directors. In 2002, the Company also promised to grant 50,000 shares at the end
of three years and 75,000 shares at the end of four years if the Company achieved predefined performance
targets over the respective measurement periods.
In 2000, 270,000 shares of three-year performance-based and 2,025,000 shares of five-year performance-
based restricted stock were granted. The release of these shares was contingent upon the Company achieving
certain predefined performance targets over the three-year and five-year measurement periods, respectively.
Participants were entitled to vote and receive dividends on these shares during the measurement period. The
Company also promised to grant 180,000 shares of stock at the end of three years and 200,000 shares at the end
of five years to certain employees if the Company achieved predefined performance targets over the respective
measurement periods.
In May 2001, all performance-based restricted stock awards and promises made to grant shares in the future
were cancelled, with the exception of 150,000 shares of five-year performance-based restricted stock. New
awards for the same number of cancelled shares, with the exception of the promises made in 2000 to grant
200,000 shares at the end of five years, were granted at an average fair value of $47.88 per share. The release of
the shares is subject to the Company’s achievement of a minimum of 11 percent annual growth in earnings per
share over the respective measurement periods, as adjusted for certain items approved by the Board of
Directors. In 2001, an additional 10,000 shares of three-year performance-based restricted stock and 50,000
shares of five-year performance-based restricted stock were granted at an average fair value of $46.22 per share
and $45.70 per share, respectively, with predefined performance targets to be achieved over the respective
measurement periods. In 2001, an additional 250,000 shares of five-year performance-based restricted stock
were granted at an average fair value of $46.80 per share.
In all cases where the measurement period ended in 2003, the performance conditions for the three-year
performance-based restricted stock grants and the promises to grant stock at the end of the three-year period
were not achieved.
NOTE 14: PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
Our Company sponsors and/or contributes to pension and postretirement health care and life insurance
benefit plans covering substantially all U.S. employees. We also sponsor nonqualified, unfunded defined benefit
pension plans for certain members of management. In addition, our Company and its subsidiaries have various
pension plans and other forms of postretirement arrangements outside the United States.
Total expense for all benefit plans, including defined benefit pension plans, defined contribution pension
plans, and postretirement health care and life insurance benefits plans, amounted to $243 million in 2003,
$168 million in 2002 and $142 million in 2001. In addition, in 2003 the Company recorded a charge of
$23 million for special retirement benefits and curtailment costs as part of the streamlining costs discussed in
Note 17.
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