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Notes to the Financial Statements
156 Ford Motor Company | 2011 Annual Report
NOTE 20. SHARE-BASED COMPENSATION (Continued)
As of December 31, 2011, there was about $13 million in unrealized compensation cost related to non-vested stock
options. This expense will be recognized over a weighted-average period of 1.3 years. A summary of the status of our
non-vested shares and changes during 2011 follows:
Non-vested, beginning of year
Granted
Vested
Forfeited
Non-vested, end of year
Shares
(millions)
28.8
4.4
(15.1)
(0.5)
17.6
Weighted-
Average Grant-
Date Fair Value
$2.77
8.48
2.43
2.79
4.49
The estimated fair value of stock options at the time of grant using the Black-Scholes option-pricing model was as
follows:
Fair value per stock option
Assumptions:
Annualized dividend yield
Expected volatility
Risk-free interest rate
Expected stock option term (in years)
2011
$8.48
—%
53.2%
3.2%
7.1
2010
$7.21
—%
53.4%
3.0%
6.9
2009
$1.07
—%
52.0%
2.7%
6.0
Details on various stock option exercise price ranges are as follows:
Range of Exercise Prices
$1.96 – $2.84
$5.11 – $10.18
$11.10 – $15.98
$16.09 – $17.05
Total stock options
Outstanding Options
Shares
(millions)
22.4
41.5
48.3
32.2
144.4
Weighted-
Average
Life
(years)
7.20
4.21
3.85
0.30
Weighted-
Average
Exercise
Price
$2.10
7.42
13.20
16.88
Exercisable Options
Shares
(millions)
13.7
41.5
39.4
32.2
126.8
Weighted-
Average
Exercise
Price
$2.11
7.42
13.08
16.88
Other Share-Based Awards
Under the 1998 LTIP and 2008 LTIP, we have granted other share-based awards to certain employees. 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):
Compensation cost (a)
2011
$(9)
2010
$6
2009
$11
__________
(a) Net of tax of $3 million, $0, and $0 in 2011, 2010, and 2009, respectively.