Coca Cola 2006 Annual Report Download - page 106

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 15: STOCK COMPENSATION PLANS (Continued)
Time-Based Restricted Stock Awards
The following table summarizes information about time-based restricted stock awards:
2006 2005 2004
Weighted- Weighted- Weighted-
Average Average Average
Grant-Date Grant-Date Grant-Date
Shares Fair Value Shares Fair Value Shares Fair Value
Nonvested on January 1 422,700 $ 36.31 513,700 $ 39.97 1,224,900 $ 45.20
Granted1——9,000 41.80 140,000 48.97
Vested and released2(30,000) 58.48 (100,000) 55.62 (296,800) 36.68
Cancelled/Forfeited (10,000) 21.91 — — (554,400) 55.57
Nonvested on December 31 382,7001$ 34.95 422,7001$ 36.31 513,700 $ 39.97
1In 2006, the Company promised to grant an additional 21,000 shares with a grant-date fair value of
$48.84 per share to an employee upon retirement. In 2005, the Company promised to grant an
additional 10,000 shares to an employee with a grant-date fair value of $42.84 per share upon
completion of three years of service. These awards are similar to time-based restricted stock,
including the payment of dividend equivalents, but were granted in this manner because the
employees were based outside of the United States.
2The total fair value of time-based restricted shares vested and released during the years ended
December 31, 2006, 2005 and 2004, was approximately $1.3 million, $4.3 million, and $13.2 million,
respectively. The grant date fair value is the quoted market value of the Company stock on the
respective grant date.
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 weighted average grant-date fair value was
$32.26 per share and the total fair value of shares released was approximately $8.3 million. 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.
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 have specific earnings per share targets for achievement. If the earnings per share targets are not met,
the awards will be cancelled.
104