AbbVie 2012 Annual Report Download - page 148
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Program,’’ of Abbott’s Notes to Consolidated Financial Statements included under Item 8,
‘‘Financial Statements and Supplemental Data’’ in Abbott’s 2012 Annual Report on SEC
Form 10-K. The assumptions for replacement options are described in footnote (3) to the
Summary Compensation Table.
(7) At the time of the Separation, these awards were converted into equivalent AbbVie awards. These
awards will vest after January 1, 2016, subject to continued employment with AbbVie from the
grant date through the vesting date and AbbVie achieving a minimum return on equity target for
the period of 2013 through 2015.
(8) These are replacement options. When the exercise price of an option with a replacement feature is
paid (or, in the case of a non-qualified stock option, when the option exercise price or the
withholding taxes resulting on exercise of that option are paid) with Abbott common shares held
by the named executive officer, a replacement option may be granted for the number of shares
used to make that payment. Abbott uses the closing price of an Abbott common share on the
business day before the exercise to determine the number of shares required to exercise the
related option and the exercise price of the replacement option. The replacement option is
exercisable in full six months after the grant date, and has a term expiring on the expiration date
of the original option. Other terms and conditions of the replacement option are the same in all
material respects as those applicable to the original option.
34