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Notes to the Financial Statements
152 Ford Motor Company | 2010 Annual Report
NOTE 21. SHARE-BASED COMPENSATION (Continued)
As of December 31, 2010, there was about $23 million in unrealized compensation cost related to non-vested stock
options. This expense will be recognized over a weighted-average period of 1.4 years. A summary of the status of our
non-vested shares and changes during 2010 follows:
Shares
Shares Shares
Shares
(millions)
(millions)(millions)
(millions)
Weighted
WeightedWeighted
Weighted-
---
Average Grant
Average GrantAverage Grant
Average Grant-
---
Date Fair Value
Date Fair ValueDate Fair Value
Date Fair Value
Non-vested, beginning of year ................................................................................................
................................
40.4 $ 1.73
Granted................................................................................................................................
...........................
6.7 7.21
Vested ................................................................................................................................
............................
(17.9) 2.11
Forfeited................................................................................................................................
..........................
(0.4) 2.19
Non-vested, end of year................................................................................................
................................
28.8 2.77
The estimated fair value of stock options at the time of grant using the Black-Scholes option-pricing model was as
follows:
2010
20102010
2010
2009
20092009
2009
2008
20082008
2008
Fair value per stock option................................................................
................................
$ 7.21 $ 1.07 $ 2.65
Assumptions:
Annualized dividend yield................................................................
................................
—% —% —%
Expected volatility ................................................................................................
................................
53.4% 52.0% 37.7%
Risk-free interest rate................................................................................................
................................
3.0% 2.7% 3.9%
Expected stock option term (in years) ................................................................
................................
6.9 6.0 6.0
Details on various stock option exercise price ranges are as follows:
Outstanding Options
Outstanding OptionsOutstanding Options
Outstanding Options
Exercisable Options
Exercisable OptionsExercisable Options
Exercisable Options
Range of Exercis
Range of ExercisRange of Exercis
Range of Exercise Prices
e Pricese Prices
e Prices
Shares
Shares Shares
Shares
(millions)
(millions)(millions)
(millions)
Weighted
WeightedWeighted
Weighted-
---
Average Life
Average Life Average Life
Average Life
(years)
(years)(years)
(years)
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
$1.96 – $7.55 ................................................................
...........................
51.5 6.64 $ 4.74 30.1 $ 6.07
$7.68 – $12.98 ................................
................................
43.5 5.32 10.70 36.1 10.37
$13.07 – $16.91 ................................
................................
54.4 1.87 15.61 54.4 15.61
$17.06 – $30.19 ................................
................................
23.1 0.19 30.12 23.1 30.12
Total stock options................................
................................
172.5 143.7
Other Share-Based Awards
Under the 1998 LTIP and 2008 LTIP, we have granted other share-based awards to select executives and other key
employees, in addition to stock options and restricted stock units. These awards include restricted stock grants, cash-
settled restricted stock units, and stock appreciation rights. These awards have various vesting criteria which may include
service requirements, individual performance targets, and company-wide performance targets.
Other share-based compensation cost was as follows (in millions):
2010
20102010
2010
2009
20092009
2009
2008
20082008
2008
Compensation cost, net of taxes*................................................................
................................
$ 6 $ 11 $ —
__________
* No taxes recorded in each period due to established valuation allowances.