Ford 2011 Annual Report Download - page 157

Download and view the complete annual report

Please find page 157 of the 2011 Ford annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 188

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188

Notes to the Financial Statements
Ford Motor Company | 2011 Annual Report 155
NOTE 20. SHARE-BASED COMPENSATION (Continued)
Compensation cost for RSU-stock was as follows (in millions):
Compensation cost (a)
2011
$84
2010
$138
2009
$117
__________
(a) Net of tax benefit of $49 million, $0, and $0 in 2011, 2010, and 2009, respectively.
As of December 31, 2011, there was approximately $49 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:
Outstanding, beginning of year
Granted
Exercised (a)
Forfeited (including expirations)
Outstanding, end of year
Exercisable, end of year
2011
Shares
(millions)
172.5
4.4
(8.2)
(24.3)
144.4
126.8
Weighted-
Average
Exercise
Price
$13.07
14.76
9.25
29.18
10.63
11.00
2010
Shares
(millions)
225.4
6.7
(36.5)
(23.1)
172.5
143.7
Weighted-
Average
Exercise
Price
$13.36
12.75
8.41
23.18
13.07
14.63
2009
Shares
(millions)
226.2
26.5
(1.3)
(26.0)
225.4
185.0
Weighted-
Average
Exercise
Price
$ 16.37
2.06
7.35
28.28
13.36
15.47
__________
(a) Exercised at option price ranging from $1.96 to $16.91 during 2011, option price ranging from $1.96 to $16.91 during 2010, and option price ranging
from $5.49 to $7.83 during 2009.
The total grant date fair value of options that vested during the years ended December 31 was as follows (in millions):
Fair value of vested options
2011
$36
2010
$37
2009
$41
We have 126.8 million fully-vested stock options, with a weighted-average exercise price of $11.00 and average
remaining term of 3 years. We expect 17.2 million stock options (after forfeitures), with a weighted-average exercise price
of $7.96 and average remaining term of 8 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):
Intrinsic value of vested options (a)
Intrinsic value of unvested options (after forfeitures) (a)
2011
$257
74
2010
$623
324
2009
$132
246
__________
(a) The intrinsic value for stock options is measured by comparing the awarded option price to the closing stock price at December 31.
We received approximately $76 million from the exercise of stock options in 2011. The tax benefit realized was
de minimis. An equivalent of about $73 million in new issues were used to settle exercised options. For options exercised
during the years ended December 31, 2011, 2010, and 2009, the difference between the fair value of the Common Stock
issued and the respective exercise price was $54 million, $187 million, and $2 million, respectively.
Compensation cost for stock options was as follows (in millions):
Compensation cost (a)
2011
$30
2010
$34
2009
$29
__________
(a) Net of tax benefit of $17 million, $0, and $0 in 2011, 2010, and 2009, respectively.