Coca Cola 2014 Annual Report Download - page 110

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108
The following table summarizes information about performance share units based on the target award amounts in the performance
share unit agreements:
Share
Units
(In thousands)
Weighted-Average
Grant Date
Fair Value
Outstanding on January 1, 2014 17,974 $ 30.41
Granted 6,117 32.33
Paid in cash equivalent (5) 30.59
Canceled/forfeited
(6,660) 29.11
Outstanding on December 31, 2014117,426 $ 31.59
1 The outstanding performance share units as of December 31, 2014, at the threshold award and maximum award levels were 8.7 million and 26.1 million,
respectively.
The weighted-average grant date fair value of performance share units granted was $32.33 in 2014, $32.67 in 2013 and $29.95 in 2012.
The Company converted performance share units of 5,403 in 2014, 54,999 in 2013 and 16,267 in 2012 to cash equivalent payments
of $0.2 million, $1.8 million and $0.6 million, respectively, to former employees who were ineligible for restricted stock grants due to
certain events such as death or disability.
The following table summarizes information about nonvested restricted stock and stock units:
Restricted Stock
and Stock Units
(In thousands)
Weighted-Average
Grant Date
Fair Value1
Nonvested on January 1, 201427,014 $ 25.17
Vested and released (6,774) 25.17
Canceled/forfeited (110) 25.17
Nonvested on December 31, 20142130 $ 25.17
1 The weighted-average grant date fair value is based on the fair values of the performance share units granted.
2 The nonvested restricted stock and stock units as of January 1, 2014, and December 31, 2014, are presented at the performance share units’ certified
award level.
The total intrinsic value of restricted shares that were vested and released was $255 million, $16 million and $148 million in 2014, 2013
and 2012, respectively. The total restricted share units vested and released in 2014 were 6,773,934 at the certified award level. In 2013
and 2012, the total restricted share units vested and released were 405,963 and 4,301,732, respectively.
Replacement performance share unit awards issued by the Company in connection with our acquisition of CCE’s former North
America business are not included in the tables or discussions above and were originally granted under the Coca-Cola Enterprises
Inc. 2007 Incentive Award Plan. These awards were converted into equivalent share units of the Company’s common stock on the
acquisition date and entitle the participant to dividend equivalents (which vest, in some cases, only if the restricted share units vest),
but not the right to vote. Accordingly, the fair value of these units was the quoted value of the Company’s stock at the grant date.
On the acquisition date, the Company issued 3.3 million replacement performance share unit awards at target with a weighted-
average grant date price of $29.56 per share that were either projected to pay out at, or previously certified at, a payout rate of
200 percent. In accordance with accounting principles generally accepted in the United States, the portion of the fair value of the
replacement awards related to services provided prior to the acquisition was included in the total purchase price. The portion of the
fair value associated with future service was recognized as expense in the fourth quarter of 2010. The Company released shares with an
intrinsic value of $5 million and $22 million in 2013 and 2012, respectively. As of December 31, 2014, the Company had no remaining
outstanding replacement performance share units.