Alcoa 2012 Annual Report Download - page 144

Download and view the complete annual report

Please find page 144 of the 2012 Alcoa annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 200

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200

Options Fully Vested and Exercisable
Range of
exercise price Number
Weighted
average
remaining
contractual
life
Weighted
average
exercise
price
Intrinsic
Value
$6.12 - $8.33 17.9 2.06 $ 8.33 $7
$8.34 - $11.33 0.1 6.65 10.72 -
$11.34 - $17.40 6.2 7.07 14.10 -
$17.41 - $46.77 5.6 0.26 26.96 -
Total 29.8 2.77 13.02 $7
In addition to stock option awards, the Company grants stock awards and performance share awards, both of which
vest three years from the date of grant. Performance share awards are issued at target and the final award amount is
determined at the end of the performance period.
The following table summarizes the outstanding stock and performance share awards (awards in millions):
Stock
Awards
Performance
Share Awards Total
Weighted
average
FMV
per award
Outstanding, January 1, 2012 6.4 2.9 9.3 $13.63
Granted 3.0 1.9 4.9 10.08
Converted (1.0) (0.8) (1.8) 8.42
Forfeited (0.5) (0.2) (0.7) 13.49
Performance share adjustment - 0.2 0.2 12.74
Outstanding, December 31, 2012 7.9 4.0 11.9 12.96
At December 31, 2012, there was $22 and $35 of unrecognized compensation expense (pretax) related to non-vested
stock option grants and non-vested stock award grants, respectively. This expense is expected to be recognized over a
weighted average period of 1.5 years. As of December 31, 2012, the following table summarizes the unrecognized
compensation expense expected to be recognized in future periods:
Stock-based compensation
expense (pretax)
2013 $38
2014 18
2015 1
Totals $57
S. Earnings Per Share
Basic earnings per share (EPS) amounts are computed by dividing earnings, after the deduction of preferred stock
dividends declared and dividends and undistributed earnings allocated to participating securities, by the average
number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially
dilutive share equivalents outstanding not classified as participating securities.
133