Coca Cola 2008 Annual Report Download - page 118

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 15: STOCK COMPENSATION PLANS (Continued)
stock, except for certain circumstances such as death or disability, where former employees or their beneficiaries
are provided a cash equivalent payment. Of the outstanding granted performance share units as of
December 31, 2008, 710,700; 985,168; and 2,667,168 awards are for the 2006-2008, 2007-2009 and 2008-2010
performance periods, respectively. Also, outstanding as of December 31, 2008, are 98,700 performance share
units granted in 2007 with certain financial measures of a business unit of the Company as the performance
criteria. In addition, 72,000 performance share units, with predefined qualitative performance criteria and
release criteria that differ from the program described above, were granted in 2004 and were outstanding as of
December 31, 2008.
The following table summarizes information about performance share units based on the Target Award
amounts in the performance share unit agreements:
2008 2007 2006
Weighted- Weighted- Weighted-
Average Average Average
Share Grant-Date Share Grant-Date Share Grant-Date
Units Fair Value Units Fair Value Units Fair Value
Outstanding on January 1 2,780,333 $ 41.50 2,271,240 $ 39.99 2,356,728 $ 40.42
Granted 2,756,447 53.08 1,221,578 46.51 160,000 37.84
Conversions:
Restricted stock1,4 (471,610) 38.69 (203,609) 45.45 (123,852) 42.07
Promises to grant2,4 (276,751) 37.81 (179,292) 46.78 — —
Paid in cash equivalent3(56,642) 39.29 (23,790) 46.83 (7,178) 41.87
Cancelled/forfeited (198,041) 52.84 (305,794) 44.22 (114,458) 43.45
Outstanding on
December 31 4,533,736 $ 48.59 2,780,333 $ 41.50 2,271,240 $ 39.99
1Represents performance share units converted to restricted stock based on the certification of
financial results for the 2004-2006 and 2005-2007 performance periods and for certain executives prior
to retirement. The vesting of this restricted stock is subject to terms of the performance share unit
agreements.
2Represents performance share units converted to promises to grant restricted stock for executives
based on the certification of financial results for the 2004-2006 and 2005-2007 performance periods.
These awards are similar to restricted stock, including payment of dividend equivalents, but were
granted in this manner because the executives were based outside of the United States. The vesting of
promises to grant restricted stock is subject to terms of the performance share unit agreements.
3Represents performance share units that converted to cash equivalent payments of approximately
$3.3 million, $1.2 million and $0.3 million in 2008, 2007 and 2006, respectively, to former executives
who were ineligible for restricted stock grants due to certain events such as death, disability or
termination.
4The performance share unit conversions during 2008 are presented at the Target Award. An
additional 207,790 restricted shares and 138,377 of promises to grant restricted shares were awarded
during 2008 based on the certified financial results of the 2005-2007 performance period.
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