Allstate 2013 Annual Report Download - page 283

Download and view the complete annual report

Please find page 283 of the 2013 Allstate 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 296

  • 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
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268
  • 269
  • 270
  • 271
  • 272
  • 273
  • 274
  • 275
  • 276
  • 277
  • 278
  • 279
  • 280
  • 281
  • 282
  • 283
  • 284
  • 285
  • 286
  • 287
  • 288
  • 289
  • 290
  • 291
  • 292
  • 293
  • 294
  • 295
  • 296

risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the
time of grant. The assumptions used are shown in the following table.
2012 2011 2010
Weighted average expected term 9.0 years 7.9 years 7.8 years
Expected volatility 20.2 - 53.9% 22.1 - 53.9% 23.7 - 52.3%
Weighted average volatility 34.6% 35.1% 35.1%
Expected dividends 2.2 - 3.0% 2.5 - 3.7% 2.4 - 2.8%
Weighted average expected dividends 2.8% 2.7% 2.6%
Risk-free rate 0.0 - 2.2% 0.0 - 3.5% 0.1 - 3.9%
A summary of option activity for the year ended December 31, 2012 is shown in the following table.
Weighted
Weighted Aggregate average
average intrinsic remaining
Number exercise value contractual
(in 000s) price (in 000s) term (years)
Outstanding as of January 1, 2012 33,947 $ 39.00
Granted 3,727 31.62
Exercised (4,113) 24.00
Forfeited (619) 29.86
Expired (3,299) 43.81
Outstanding as of December 31, 2012 29,643 39.81 $ 193,556 5.1
Outstanding, net of expected forfeitures 29,371 39.89 191,143 5.1
Outstanding, exercisable (‘‘vested’’) 18,840 46.07 71,729 3.5
The weighted average grant date fair value of options granted was $8.69, $9.49 and $9.89 during 2012, 2011 and
2010, respectively. The intrinsic value, which is the difference between the fair value and the exercise price, of options
exercised was $52 million, $15 million and $16 million during 2012, 2011 and 2010, respectively.
The changes in restricted stock units are shown in the following table for the year ended December 31, 2012.
Weighted
average
Number grant date
(in 000s) fair value
Nonvested as of January 1, 2012 4,326 $ 28.76
Granted 1,253 31.89
Vested (939) 40.13
Forfeited (188) 28.15
Nonvested as of December 31, 2012 4,452 27.27
The fair value of restricted stock units is based on the market value of the Company’s stock as of the date of the
grant. The market value in part reflects the payment of future dividends expected. The weighted average grant date fair
value of restricted stock units granted was $31.89, $31.38 and $31.32 during 2012, 2011 and 2010, respectively. The total
fair value of restricted stock units vested was $30 million, $13 million and $16 million during 2012, 2011 and 2010,
respectively.
167