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, 2011
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:
 
2011

 
2010

 
2009

Fair value of options at grant date
$
9.28

 
$
9.39

 
$
6.38

Dividend yield1
2.7
%
 
2.9
%
 
3.4
%
Expected volatility2
19.0
%
 
20.0
%
 
20.0
%
Risk-free interest rate3
2.3
%
 
3.0
%
 
2.8
%
Expected term of the option4
5 years

 
6 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, 2011, was as follows:
 
Shares
(In millions)

 
Weighted-Average
Exercise Price

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

Outstanding on January 1, 2011
171

 
$
48.77

 
 
 
 

Granted
26

 
64.03

 
 
 
 

Exercised
(32
)
 
47.96

 
 
 
 

Forfeited/expired
(3
)
 
53.77

 
 
 
 

Outstanding on December 31, 20111
162

 
$
51.23

 
5.93 years
 
$
3,028

Expected to vest at December 31, 2011
160

 
$
51.13

 
5.90 years
 
$
3,009

Exercisable on December 31, 2011
106

 
$
48.65

 
4.76 years
 
$
2,266

1 
Includes 3 million stock option replacement awards in connection with our acquisition of CCE's North American business in 2010. These options had a weighted-average exercise price of $36.98, which generally vest over three 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, 2011
5,254

 
$
51.60

Granted
3,054

 
51.16

Conversions:
 
 
 
    Restricted stock units1,2
(2,311
)
 
53.08

Paid in cash equivalent
(10
)
 
53.13

Canceled/forfeited
(304
)
 
50.56

Outstanding on December 31, 20113
5,683

 
$
50.81

1 
Represents the target amount of performance share units converted to restricted stock units based on the financial results for the 2008-2010 performance period. The vesting of restricted stock units is subject to the terms of the performance share unit agreements.
2 
The performance share unit conversions during 2011 are presented at the target award amount. An additional 173,360 restricted stock units were awarded during 2011 based on the financial results of the 2008-2010 performance period.
3 
The outstanding performance share units as of December 31, 2011, at the threshold award and maximum award levels were 2.8 million and 8.5 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, 2011
797

 
$
43.29

Granted:
 
 
 
    Restricted stock units2
2,311

 
53.08

Vested and released
(1,024
)
 
45.72

Canceled/forfeited
(17
)
 
43.71

Nonvested on December 31, 20113
2,067

 
$
53.05

1 
The weighted-average grant-date fair value is based on the fair values of the performance share units grant fair values.
2 
The granted shares are presented at the performance share units target award amount. An additional 173,360 restricted stock units were granted based on the financial results of the 2008-2010 performance period.
3 
The nonvested shares as of December 31, 2011, are presented at the performance share units target award amount. An additional 154,500 shares were outstanding and nonvested as of December 31, 2011.