The Coca-Cola Company Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

STOCK COMPENSATION PLANS (Tables)

STOCK COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2020

Weighted-average fair value of options granted and the weighted-average assumptions used in the Black Scholes Merton option pricing model for such grants

The weighted-average fair value of stock options granted during the years ended December 31, 2020, 2019 and 2018 and the weighted-average assumptions used in the Black-Scholes-Merton option-pricing model for such grants were as follows:


Year Ended December 31,	2020			2019			2018
Fair value of stock options on grant date	$	6.44		$	4.94		$	4.97
Dividend yield1	2.7		%	3.5		%	3.5		%
Expected volatility2	16.0		%	15.5		%	15.5		%
Risk-free interest rate3	1.4		%	2.6		%	2.8		%
Expected term of stock options4	6 years			6 years			6 years

1The dividend yield is the calculated yield on the Company's stock on the grant date.

2The expected volatility is based on implied volatilities from traded options on the Company's stock, historical volatility of the Company's stock and other factors.

3The risk-free interest rate for the period matching the expected term of the stock options is based on the U.S. Treasury yield curve in effect on the grant date.

4The expected term of the stock options represents the period of time that options granted are expected to be outstanding and is derived by analyzing historical exercise behavior.

Stock option activity for all plans

Stock option activity during the year ended December 31, 2020 was as follows:


	Shares (In millions)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value (In millions)
Outstanding on January 1, 2020	105	$	38.43
Granted	7	59.38
Exercised	(23)	35.67
Forfeited/expired	(1)	53.82
Outstanding on December 31, 2020	88	$	40.55	4.16 years	$	1,289
Expected to vest	87	$	40.44	4.11 years	$	1,283
Exercisable on December 31, 2020	72	$	38.43	3.29 years	$	1,188

Summary of information about performance share units based on the Target Award amounts in the performance share unit agreements

The following table summarizes information about performance share units and growth share units based on the target award amounts:


	Performance Share Units and Growth Share Units (In thousands)	Weighted-Average Grant Date Fair Value
Outstanding on January 1, 2020	6,831	$	38.57
Granted	1,983	57.00
Conversions into restricted stock units1	(2,662)	35.30
Paid in cash equivalent	(5)	38.20
Canceled/forfeited	(504)	46.36
Outstanding on December 31, 20202	5,643	$	45.89

1Represents the target amount of performance share units converted into restricted stock units for the 2017-2019 performance period. The vesting of restricted stock units is subject to the terms of the performance share unit agreements.

2The outstanding growth share units as of December 31, 2020 at the threshold award and maximum award levels were approximately 2,384,000 and 12,950,000, respectively.

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

The following table summarizes information about performance-based restricted stock units based on the performance share units' certified award level:


	Restricted Stock Units (In thousands)	Weighted- Average Grant Date Fair Value
Nonvested on January 1, 2020	3,195	$	39.70
Conversions from performance share units	3,785	35.30
Vested and released	(3,189)	39.72
Canceled/forfeited	(63)	35.71
Nonvested on December 31, 2020	3,728	$	35.30

Nonvested Restricted Stock Shares Activity [Table Text Block]

The following table summarizes information about time-based restricted stock and restricted stock units:


	Restricted Stock and Restricted Stock Units (In thousands)	Weighted-Average Grant Date Fair Value
Nonvested on January 1, 2020	4,054	$	40.73
Granted	1,354	53.90
Vested and released	(735)	41.52
Canceled/forfeited	(511)	46.30
Nonvested on December 31, 2020	4,162	$	44.18