Coca Cola 2014 Annual Report Download - page 108

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Generally, stock options granted from 1999 through July 2003 expire 15 years from the date of grant and stock options granted in
December 2003 and thereafter expire 10 years from the date of grant. The shares of common stock to be issued and/or sold under the
stock option plans are made available from authorized and unissued Company common stock or from the Company’s treasury shares.
In 2007, the Company began issuing common stock under these plans from the Company’s treasury shares.
In addition to the 2014 Equity Plan discussed above, the Company had the following stock option plans as of December 31, 2014:
• The Coca-Cola Company 1999 Stock Option Plan (the “1999 Option Plan”) was approved by shareowners in April 1999. Under
the 1999 Option Plan, a maximum of 240 million shares of our common stock was approved to be issued, through the grant of
stock options, to certain officers and employees.
• The Coca-Cola Company 2002 Stock Option Plan (the “2002 Option Plan”) was approved by shareowners in April 2002. An
amendment to the 2002 Option Plan which permitted the issuance of stock appreciation rights was approved by shareowners
in April 2003. Under the 2002 Option Plan, a maximum of 240 million shares of our common stock was approved to be issued,
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, 2014. There are no longer any shares available for grant from
the 2002 Option Plan.
• 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 280 million shares of our common stock was approved to be issued, through the grant of
stock options, to certain officers and employees.
• As a result of our acquisition of CCE’s former North America business, the Company assumed certain stock-based
compensation plans previously sponsored by CCE. The assumed Coca-Cola Enterprises Inc. 2001 Stock Option Plan,
Coca-Cola Enterprises Inc. 2004 Stock Award Plan and Coca-Cola Enterprises Inc. 2007 Incentive Award Plan previously
sponsored by CCE have approximately 1.4 million shares outstanding after conversion of CCE common stock into our common
stock. The Company has not granted any equity awards from the assumed plans since the acquisition, and as of December 31,
2014, no shares remain available for grant.
As of December 31, 2014, there were 2.7 million shares available to be granted under the 1999 Option Plan and 2008 Option Plan.
Options to purchase common stock under these plans have generally been granted at the fair market value of the Company’s stock at
the date of grant.
Stock option activity for all stock option plans for the year ended December 31, 2014, was as follows:
Shares
(In millions)
W eighted- A verage
Exercise Price
W eighted- A verage
R emaining
Contractual Life
Aggregate
Intrinsic V alue
(In millions)
Outstanding on January 1, 2014 305 $ 29.42
Granted 68 37.24
Exercised (58) 26.12
Forfeited/expired (10) 35.03
Outstanding on December 31, 20141305 $
31.60 6.07 years $ 3,241
Expected to vest at December 31, 2014 300 $
31.51 6.03 years $ 3,216
Exercisable on December 31, 2014 173 $
27.85 4.35 years $ 2,480
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Includes 1.4 million stock option replacement awards in connection with our acquisition of CCE’s former North America business in 2010. These options
had a weighted-average exercise price of $16.62 and generally vest over 3 years and expire 10 years from the original date of grant.
The total intrinsic value of the options exercised was $894 million, $815 million and $780 million in 2014, 2013 and 2012, respectively.
The total shares exercised were 58 million, 53 million and 61 million in 2014, 2013 and 2012, 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”), 80 million and 48 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, 2014, 0.2 million shares remain
available for grant under the Restricted Stock Award Plans. The Company issues restricted stock to employees as a result of
performance share unit awards, time-based awards and performance-based awards.