Annual report pursuant to Section 13 and 15(d)

STOCK COMPENSATION PLANS (Tables)

v2.4.0.6
STOCK COMPENSATION PLANS (Tables)
 12 Months Ended
Dec. 31, 2012
STOCK COMPENSATION PLANS [Abstract]  
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 options granted during the past three years and the weighted-average assumptions used in the Black-Scholes-Merton option-pricing model for such grants were as follows:
 
2012

 
2011

 
2010

 
 
 
As Adjusted
Fair value of options at grant date
$
3.80

 
$
4.64

 
$
4.70

Dividend yield1
2.7
%
 
2.7
%
 
2.9
%
Expected volatility2
18.0
%
 
19.0
%
 
20.0
%
Risk-free interest rate3
1.0
%
 
2.3
%
 
3.0
%
Expected term of the option4
5 years

 
5 years

 
6 years

1 
The dividend yield is the calculated yield on the Company's stock at the time of the grant.
2 
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.
3 
The risk-free interest rate for the period matching the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.
4 
The expected term of the option represents the period of time that options granted are expected to be outstanding and is derived by analyzing historic exercise behavior.
Stock option activity for all stock option plans
Stock option activity for all stock option plans for the year ended December 31, 2012, was as follows:
 
Shares
(In millions)

 
Weighted-Average
Exercise Price

 
Weighted-Average
Remaining
Contractual Life
 
Aggregate
Intrinsic Value
(In millions)

Outstanding on January 1, 2012 — As Adjusted
323

 
$
25.62

 
 
 
 

Granted
53

 
34.40

 
 
 
 

Exercised
(61
)
 
24.43

 
 
 
 

Forfeited/expired
(6
)
 
30.01

 
 
 
 

Outstanding on December 31, 20121
309

 
$
27.27

 
5.82 years
 
$
2,777

Expected to vest at December 31, 2012
305

 
$
27.20

 
5.79 years
 
$
2,765

Exercisable on December 31, 2012
194

 
$
24.92

 
4.41 years
 
$
2,200

1 
Includes 4 million stock option replacement awards in connection with our acquisition of CCE's former North America business in 2010. These options had a weighted-average exercise price of $18.32, and generally vest over 3 years and expire 10 years from the original date of grant.
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 based on the target award amounts in the performance share unit agreements:
 
Share Units
(In thousands)

 
Weighted-Average
Grant-Date
Fair Value

Outstanding on January 1, 2012 — As Adjusted
11,366

 
$
25.41

Granted
7,034

 
29.95

Paid in cash equivalent
(16
)
 
27.30

Canceled/forfeited
(800
)
 
27.71

Outstanding on December 31, 20121
17,584

 
$
28.01

1 
The outstanding performance share units as of December 31, 2012, at the threshold award and maximum award levels were 8.8 million and 26.4 million, respectively.
Summary of conversion of performance share units to restricted stock and restricted stock units
The following table summarizes information about the conversions of performance share units to restricted stock and restricted stock units:
 
Share Units
(In thousands)

 
Weighted-Average
Grant-Date
Fair Value1

Nonvested on January 1, 2012 — As Adjusted2
4,444

 
$
26.53

Vested and released
(4,302
)
 
26.53

Canceled/forfeited
(44
)
 
26.54

Nonvested on December 31, 20122
98

 
$
26.54

1 
The weighted-average grant-date fair value is based on the fair values of the performance share units granted.
2 
The nonvested shares as of January 1, 2012, and December 31, 2012, are presented at the performance share units certified award amount.