Coca Cola 2007 Annual Report Download - page 107

Download and view the complete annual report

Please find page 107 of the 2007 Coca Cola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 15: STOCK COMPENSATION PLANS (Continued)
The following table summarizes information about the conversions of performance share unit awards to restricted
stock and promises to grant restricted stock:
2007 2006
Share Units
Weighted-
Average
Grant-Date
Fair Value1Share Units
Weighted-
Average
Grant-Date
Fair Value1
Nonvested on January 1 123,852 $ 42.07 —$ —
Granted 203,609 45.45 123,852 42.07
Promises to grant 179,292 46.78 ——
Vested and released2(59,515) 46.78 ——
Cancelled/forfeited (25,000) 46.78 ——
Nonvested on December 31 422,2383$ 44.76 123,852 $ 42.07
1The weighted-average grant-date fair value is based on the fair values of the PSU awards-grant fair
values.
2The total fair value of restricted shares that were vested and released during the year ended
December 31, 2007 was approximately $2.9 million.
3The nonvested shares on December 31, 2007 include promises to grant restricted stock of 179,292.
These awards are similar to restricted stock, including the payment of dividend equivalents, but
were granted in this manner because the employees were based outside of the United States.
NOTE 16: 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 associates. In addition, our Company and its subsidiaries have various pension plans and other forms of
postretirement arrangements outside the United States.
Effective December 31, 2006, the Company adopted SFAS No. 158, which required the recognition in pension
obligations and AOCI of actuarial gains or losses, prior service costs or credits and transition assets or obligations that
had previously been deferred under the reporting requirements of SFAS No. 87, SFAS No. 106 and SFAS No. 132(R).
As a result of the adoption, the Company recorded approximately $288 million as a reduction of the December 31,
2006 retained earnings. The applicable December 31, 2007 and 2006 balances included in our consolidated financial
statements and footnotes reflect the adoption of SFAS No. 158.
In February and October of 2007, the Company amended its U.S. retiree medical plan to limit the Company’s
exposure to increases in retiree medical costs associated with current and future retirees. Based on the materiality of the
change in liability resulting from the amendments, we remeasured the assets and liabilities of the U.S. retiree medical
plan effective February 28, 2007 and October 31, 2007. As a result of the remeasurements, the Company reduced its
liabilities for the U.S. retiree medical plan by approximately $435 million. In accordance with SFAS No. 158, the
Company also recognized the appropriate effects of the change in AOCI and deferred taxes.
Certain amounts in the prior years’ disclosure have been reclassified to conform to the current year presentation.
105