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Notes to the Financial Statements
Ford Motor Company | 2010 Annual Report 151
NOTE 21. SHARE-BASED COMPENSATION (Continued)
Compensation cost for RSU-stock was as follows (in millions):
2010
20102010
2010
2009
20092009
2009
2008
20082008
2008
Compensation cost, net of taxes*................................................................
................................
$ 138 $ 117 $ 82
__________
* No taxes recorded in each period due to established valuation allowances.
As of December 31, 2010, there was approximately $74 million in unrealized compensation cost related to non-vested
RSU-stock. This expense will be recognized over a weighted average period of 1.3 years.
Stock Options
Stock option activity was as follows:
2010
20102010
2010
2009
20092009
2009
2008
20082008
2008
Shares
Shares Shares
Shares
(millions)
(millions)(millions)
(millions)
Weighted
WeightedWeighted
Weighted-
---
Average
Average Average
Average
Exercise
Exercise Exercise
Exercise
Price
PricePrice
Price
Shares
Shares Shares
Shares
(millions)
(millions)(millions)
(millions)
Weighted
WeightedWeighted
Weighted-
---
Average
Average Average
Average
Exercise
Exercise Exercise
Exercise
Price
PricePrice
Price
Shares
Shares Shares
Shares
(millions)
(millions)(millions)
(millions)
Weighted
WeightedWeighted
Weighted-
---
Average
Average Average
Average
Exercise
Exercise Exercise
Exercise
Price
PricePrice
Price
Outstanding, beginning of year
................................
225.4 $ 13.36 226.2 $ 16.37 247.3 $ 17.57
Granted................................
................................
6.7 12.75 26.5 2.06 13.5 6.12
Exercised*................................
................................
(36.5) 8.41 (1.3) 7.35 (0.3) 7.65
Forfeited (including expirations)
................................
(23.1) 23.18 (26.0) 28.28 (34.3) 21.03
Outstanding, end of year
................................
172.5 13.07 225.4 13.36 226.2 16.37
Exercisable, end of year
................................
143.7 14.63 185.0 15.47 194.8 17.86
__________
* Exercised at option price ranging from $1.96 to $16.91 during 2010, option price ranging from $5.49 to $7.83 during 2009, and option price ranging
from $7.55 to $7.83 during 2008.
The total grant date fair value of options that vested during the years ended December 31 was as follows (in millions):
2010
20102010
2010
2009
20092009
2009
2008
20082008
2008
Fair value of vested options ................................................................
................................
$ 37 $ 41 $ 65
We have 143.7 million fully-vested stock options, with a weighted-average exercise price of $14.63 and average
remaining term of 3 years. We expect 28.2 million stock options (after forfeitures), with a weighted-average exercise price
of $5.23 and average remaining term of 8.2 years, to vest in the future.
The intrinsic value for vested and unvested options during the years ended December 31 was as follows (in millions):
2010
20102010
2010
2009
20092009
2009
2008
20082008
2008
Intrinsic value of vested options*................................................................
................................
$ 623 $ 132 $ —
Intrinsic value of unvested options (after forfeitures)*................................
................................
324 246 —
__________
* The intrinsic value for stock options is measured by comparing the awarded option price to the closing stock price at December 31. There was no
intrinsic value for vested and unvested options at December 31, 2008 due to our stock closing at a market price lower than any of the outstanding
option prices.
We received approximately $307 million from the exercise of stock options in 2010. The tax benefit realized was
de minimis. An equivalent of about $307 million in new issues were used to settle exercised options. For options
exercised during the years ended December 31, 2010, 2009, and 2008, the difference between the fair value of the
Common Stock issued and their respective exercise price was $187 million, $2 million, and de minimis, respectively.
Compensation cost for stock options was as follows (in millions):
2010
20102010
2010
2009
20092009
2009
2008
20082008
2008
Compensation cost, net of taxes*................................................................
................................
$ 34 $ 29 $ 35
__________
* No taxes recorded in each period due to established valuation allowances.