Coca Cola 2004 Annual Report Download - page 99

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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)
Time-Based Restricted Stock Awards
The following table summarizes information about time-based restricted stock awards:
Number of Shares
2004 2003 2002
Outstanding on January 1, 1,224,900 1,506,485 1,492,985
Granted1140,000 — 30,000
Released (296,800) (254,585) (14,000)
Cancelled/Forfeited (554,400) (27,000) (2,500)
Outstanding on December 31, 513,700 1,224,900 1,506,485
1In 2004 and 2002, the Company granted time-based restricted stock awards with average per share
fair values of $48.97 and $50.99, respectively.
Performance-Based Restricted Stock Awards
In 2001, shareowners approved an amendment to the 1989 Restricted Stock Award Plan to allow for the
grant of performance-based awards. These awards are released only upon the achievement of specific
measurable performance criteria. These awards pay dividends during the performance period. The majority of
awards had specific earnings per share targets for achievement. If the earnings per share target is not met, the
awards will be cancelled.
The following table summarizes information about performance-based restricted stock awards:
Number of Shares
2004 2003 2002
Outstanding on January 1, 2,507,720 2,655,000 2,605,000
Granted1—52,720 50,000
Released (110,000) ——
Cancelled/Forfeited (1,684,720) (200,000) —
Outstanding on December 31, 713,00022,507,72022,655,0002
1In 2003, 52,720 shares of three-year performance-based restricted stock were granted at an average
fair value of $42.91 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.
2In 2002, the Company promised to grant an additional 50,000 shares at the end of three years and an
additional 75,000 shares at the end of four years, at an average value of $46.88, if the Company
achieved predefined performance targets over the respective measurement periods. These awards are
similar to the performance-based restricted stock, including the payment of dividend equivalents, but
were granted in this manner because the employees were situated outside of the United States. As of
December 31, 2004, these grants were still outstanding.
The Company did not recognize compensation expense for the majority of these awards, as it is not
probable the performance targets will be achieved.
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