Coca Cola 2010 Annual Report Download - page 127

by shareowners in April 2003. Under the 2002 Option Plan, a maximum of 120 million shares of our common stock was
approved to be issued or transferred, through the grant of stock options or stock appreciation rights, to certain officers
and employees. No stock appreciation rights have been issued under the 2002 Option Plan as of December 31, 2010.
The Coca-Cola Company 2008 Stock Option Plan (the ‘‘2008 Option Plan’’) was approved by shareowners in April
2008. Under the 2008 Option Plan, a maximum of 140 million shares of our common stock was approved to be issued
or transferred to certain officers and employees pursuant to stock options granted under the 2008 Option Plan.
As of December 31, 2010, there were approximately 112 million shares available to be granted under the stock option
plans discussed above. Options to purchase common stock under all of these plans have generally been granted at fair
market value at the date of grant.
Stock option activity for all stock option plans for the year ended December 31, 2010, was as follows:
Weighted-Average Aggregate
Shares Weighted-Average Remaining Intrinsic Value
(In millions) Exercise Price Contractual Life (In millions)
Outstanding on January 1, 2010 189 $ 47.90
Granted123 51.48
Exercised (37) 45.84
Forfeited/expired (4) 49.86
Outstanding on December 31, 2010 171 $ 48.77 6.21 years $ 2,916
Expected to vest at December 31, 2010 169 $ 48.75 6.18 years $ 2,878
Exercisable on December 31, 2010 114 $ 48.41 5.31 years $ 1,987
1Includes the issuance of approximately 5 million stock option replacement awards in connection with our acquisition of CCE’s
North American business. These options had a weighted-average exercise price of $36.42, which generally vest over three years and
expire 10 years from the original date of grant. A portion of the expense associated with these options has been included as a
component of the total purchase price related to our acquisition of CCE’s North American business. Refer to Note 2.
The total intrinsic value of the options exercised was $524 million, $146 million and $150 million in 2010, 2009 and
2008, respectively. The total shares exercised were 37 million, 15 million and 12 million in 2010, 2009 and 2008,
respectively.
Restricted Stock Award Plans
Under The Coca-Cola Company 1989 Restricted Stock Award Plan and The Coca-Cola Company 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, 2010, approximately 22 million shares remain available for grant under the Restricted Stock Award Plans,
when all outstanding awards including restricted stock units and performance share units at the target level are
included. The Company issues restricted stock to employees as a result of performance share unit awards, time-based
awards and performance-based awards.
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 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.
Performance Share Unit Awards
In 2003, the Company established a program to grant performance share units under The Coca-Cola Company 1989
Restricted Stock Award Plan to executives. In 2008, the Company expanded the program to award a mix of stock
options and performance share units to eligible employees in addition to executives. The number of shares earned is
determined at the end of each performance period, generally three years, based on the actual performance criteria
predetermined by the Board of Directors at the time of grant. If the performance criteria are met, the award results in
a grant of restricted stock or restricted stock units, which are then generally subject to a holding period in order for the
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