Ford 2012 Annual Report Download - page 137

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Ford Motor Company | 2012 Annual Report 135
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 22. SHARE-BASED COMPENSATION (Continued)
Compensation cost for RSUs for the years ended December 31 was as follows (in millions):
2012 2011 2010
Compensation cost (a) $ 62 $ 84 $ 138
__________
(a) Net of tax benefit of $36 million, $49 million, and $0 in 2012, 2011, and 2010, respectively.
As of December 31, 2012, there was approximately $48 million in unrecognized compensation cost related to non-
vested RSUs. This expense will be recognized over a weighted average period of 1.8 years.
Stock Options
Stock option activity was as follows:
2012 2011 2010
Shares
(millions)
Weighted-
Average
Exercise
Price
Shares
(millions)
Weighted-
Average
Exercise
Price
Shares
(millions)
Weighted-
Average
Exercise
Price
Outstanding, beginning of year 144.4 $10.63 172.5 $13.07 225.4 $ 13.36
Granted 6.4 12.43 4.4 14.76 6.7 12.75
Exercised (a) (7.6)5.70 (8.2)9.25 (36.5)8.41
Forfeited (including expirations) (35.2)16.59 (24.3)29.18 (23.1) 23.18
Outstanding, end of year 108.0 9.14 144.4 10.63 172.5 13.07
Exercisable, end of year 96.5 8.67 126.8 11.00 143.7 14.63
__________
(a) Exercised at option price ranging from $1.96 to $12.49 during 2012, option price ranging from $1.96 to $16.91 during 2011, and option price ranging
from $1.96 to $16.91 during 2010.
The total grant date fair value of options that vested during the years ended December 31 was as follows (in millions):
2012 2011 2010
Fair value of vested options $ 37 $ 36 $ 37
We have 96.5 million fully-vested stock options, with a weighted-average exercise price of $8.67 and average
remaining term of 4 years. We expect 11.3 million stock options (after forfeitures), with a weighted-average exercise price
of $13.08 and average remaining term of 9 years, to vest in the future.
The intrinsic value for stock options is measured by comparing the awarded option price to the closing stock price at
December 31. The intrinsic value for vested and unvested options during the years ended December 31 was as follows (in
millions):
2012 2011 2010
Intrinsic value of vested options $ 426 $257 $623
Intrinsic value of unvested options (after forfeitures) 4 74 324
We received approximately $43 million in proceeds from the exercise of stock options in 2012. The tax benefit
realized was de minimis. An equivalent of about $87 million in new issues were used to settle exercised options. For
options exercised during the years ended December 31, 2012, 2011, and 2010, the difference between the fair value of
the Common Stock issued and the respective exercise price was $44 million, $54 million, and $187 million, respectively.
Compensation cost for stock options for the years ended December 31 was as follows (in millions):
2012 2011 2010
Compensation cost (a) $ 26 $ 30 $ 34
__________
(a) Net of tax benefit of $16 million, $17 million, and $0 in 2012, 2011, and 2010, respectively.
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