Coca Cola 2011 Annual Report Download - page 118

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have specific performance targets for achievement. If the performance targets are not met, the awards will be canceled. In the
period it becomes probable that the performance criteria will be achieved, we recognize expense for the proportionate share of
the total fair value of the grant related to the vesting period that has already lapsed. The remaining cost of the grant is expensed
on a straight-line basis over the balance of the vesting period.
For time-based and performance-based restricted stock awards, participants are entitled to vote and receive dividends on the
restricted shares. The Company also awards time-based and performance-based restricted stock units for which participants receive
payments of dividend equivalents but are not entitled to vote. As of December 31, 2011, the Company had outstanding nonvested
time-based and performance-based restricted stock awards, including restricted stock units, of 367,000 and 130,000, respectively.
Time-based and performance-based restricted awards were not significant to our consolidated financial statements.
In 2010, the Company issued time-based restricted stock unit replacement awards in connection with our acquisition of CCE’s
North American business. Refer to Note 2. These awards were converted into equivalent shares of the Company’s common stock.
These restricted share awards entitle the participant to dividend equivalents (which vest, in some cases, only if the restricted share
unit vests), but not the right to vote. As of December 31, 2011, the Company had outstanding nonvested shares of time-based
restricted stock unit replacement awards of 309,000. These time-based restricted stock unit awards were not significant to our
consolidated financial statements.
NOTE 13: 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.
As part of the Company’s acquisition of CCE’s North American business, we assumed certain liabilities related to pension and
other postretirement benefit plans. Refer to Note 2 for additional information related to this acquisition. These liabilities relate to
various pension, retiree medical and defined contribution plans (referred to herein as the ‘‘assumed plans’’). The assumed plans
include participation in multi-employer pension plans in the U.S. See discussion of multi-employer plans below.
We refer to the funded defined benefit pension plans in the U.S. that are not associated with collective bargaining organizations
as the ‘‘primary U.S. plans.’’ The primary U.S. plans include both the Company’s existing pension plan as well as one of the
pension plans assumed in connection with our acquisition of CCE’s North American business. As of December 31, 2011, the
primary U.S. plans represented 58 percent and 60 percent of the Company’s consolidated projected pension benefit obligation and
pension assets, respectively.
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