Coca Cola 2008 Annual Report Download - page 115

Download and view the complete annual report

Please find page 115 of the 2008 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 168

  • 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
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168

THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 15: STOCK COMPENSATION PLANS (Continued)
Restricted Stock Award Plans
Under the amended 1989 Restricted Stock Award Plan and the amended 1983 Restricted Stock Award Plan
(the ‘‘Restricted Stock Award Plans’’), 40 million and 24 million shares of restricted common stock, respectively,
were originally available to be granted to certain officers and key employees of our Company. As of
December 31, 2008, approximately 25 million shares remain available for grant under the Restricted Stock
Award Plans, when all outstanding awards including promises to grant restricted stock and performance share
units at the target level are included. For time-based and performance-based restricted stock awards,
participants are entitled to vote and receive dividends on the restricted shares. For performance share units,
participants generally only receive dividends or dividend equivalents once the performance criteria has been
certified and the restricted stock or promises to grant restricted stock have been issued.
For awards prior to January 1, 2008 under the 1983 Restricted Stock Award Plan, participants are
reimbursed by our Company for income taxes imposed on the award, but not for taxes generated by the
reimbursement payment. The Company has not granted awards from the 1983 Restricted Stock Plan since 1993.
The 1983 Restricted Stock Plan has been amended to eliminate this tax reimbursement for awards after
January 1, 2008. The shares are subject to certain transfer restrictions and may be forfeited if a participant leaves
our Company for reasons other than retirement, disability or death, absent a change in control of our Company.
The following awards were outstanding and nonvested as of December 31, 2008:
• 474,478 shares of time-based restricted stock and promises to grant restricted stock in which the
restrictions lapse upon the achievement of continued employment over a specified period of time;
• 298,009 shares of performance-based restricted stock and promises to grant restricted stock in which
restrictions lapse upon the achievement of specific performance goals over a specified performance
period;
• 4,533,736 performance share units 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 7,011,354 shares; and
• 709,808 shares of restricted stock and promises to grant restricted stock from conversion of performance
share units.
The Company recognizes compensation expense for awards that are subject to performance criteria, when it
is probable that the performance criteria specified in the plan will be achieved. The compensation expense is
recognized on a straight-line basis over the remaining vesting period and is recorded in selling, general and
administrative expenses.
113