Coca Cola 2005 Annual Report Download - page 101

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 14: STOCK COMPENSATION PLANS (Continued)
The following awards were outstanding as of December 31, 2005:
• 422,700 shares of time-based restricted stock in which the restrictions lapse upon the achievement of
continued employment over a specified period of time. An additional 10,000 shares were promised for an
employee based outside of the United States;
• 713,000 shares of performance-based restricted stock in which restrictions lapse upon the achievement of
specific performance goals over a specified performance period. An additional 75,000 shares were
promised, based upon achievement of relevant performance criteria, for an employee based outside of
the United States; and
• 2,356,728 performance share unit awards which could result in a future grant of restricted stock after the
achievement of specific performance goals over a specified performance period. Such awards are subject
to adjustment based on the final performance relative to the goals, resulting in a minimum grant of no
shares and a maximum grant of 3,499,092 shares.
In the third quarter of 2004, in connection with Douglas N. Daft’s retirement, the Compensation
Committee of the Board of Directors released to Mr. Daft 200,000 shares of restricted stock previously granted
to him during the period from April 1992 to October 1998. The terms of these grants provided that the restricted
shares be released upon retirement after age 62 but not earlier than five years from the date of grant. The
Compensation Committee determined to release the shares in recognition of Mr. Daft’s 27 years of service to
the Company and the fact that he would turn 62 in March 2005. Mr. Daft forfeited 500,000 shares of restricted
stock granted to him in November 2000, since as of the date of his retirement, he had not held these shares for
five years from the date of grant. In addition, Mr. Daft forfeited 1,000,000 shares of performance-based
restricted stock, since Mr. Daft retired prior to the completion of the performance period.
Time-Based Restricted Stock Awards
The following table summarizes information about time-based restricted stock awards:
Number of Shares
2005 2004 2003
Outstanding on January 1 513,700 1,224,900 1,506,485
Granted19,000 140,000 —
Released (100,000) (296,800) (254,585)
Cancelled/Forfeited —(554,400) (27,000)
Outstanding on December 31 422,7002513,700 1,224,900
1In 2005 and 2004, the Company granted time-based restricted stock awards with average fair value of
$41.80 per share and $48.97 per share, respectively.
2In 2005, the Company promised to grant an additional 10,000 shares upon completion of three years
of service. This award is similar to time-based restricted stock, including the payment of dividend
equivalents, but was granted in this manner because the employee was based outside of the United
States.
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