Avon 2011 Annual Report Download - page 85

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A summary of stock options and stock appreciation rights as of December 31, 2011, and changes during 2011, is as follows:
Shares
(in 000’s)
Weighted-
Average
Exercise
Price
Weighted-
Average
Contractual
Term
Aggregate
Intrinsic
Value
Outstanding at January 1, 2011 29,655 $31.07
Granted 1,041 27.31
Exercised (941) 17.71
Forfeited (373) 22.56
Expired (1,021) 36.31
Outstanding at December 31, 2011 28,361 $31.30 4.8 $10.0
Exercisable at December 31, 2011 22,732 $32.60 4.1 $ 6.2
At December 31, 2011, there was approximately $6.8 of unrecognized compensation cost related to stock options and stock appreciation
rights outstanding. That cost is expected to be recognized over a weighted-average period of 1.2 years. We recognize expense on stock
options and stock appreciation rights using a graded vesting method, which recognizes the associated expense based on the timing of
option vesting dates.
Cash proceeds, tax benefits, and intrinsic value related to total stock options and stock appreciation rights exercised during 2011, 2010 and
2009, were as follows:
2011 2010 2009
Cash proceeds from stock options and stock appreciation rights exercised $16.8 $23.9 $13.1
Tax benefit realized for stock options and stock appreciation rights exercised 1.3 3.3 .9
Intrinsic value of stock options and stock appreciation rights exercised 10.0 14.6 5.0
Restricted Stock, Restricted Stock Units and Performance Restricted Stock Units
The fair value of restricted stock units and performance restricted stock units granted was determined based on the closing price of our
common stock on the date of grant.
In March 2011 we granted performance restricted stock units that vest after three years only upon the satisfaction of certain performance
conditions. We accrue compensation cost if it is probable that the performance conditions will be achieved and reassess whether
achievement of the performance conditions are probable at each reporting period. In the fourth quarter of 2011, we assessed that it is no
longer probable that we would meet the specified performance conditions, and reversed the compensation cost recognized to-date.
A summary of restricted stock, restricted stock units, and performance restricted stock units at December 31, 2011, and changes during
2011, is as follows:
Restricted
Stock
And Units
(in 000’s)
Weighted-
Average
Grant-Date
Fair Value
January 1, 2011 2,952 $26.36
Granted 2,335 26.36
Vested (769) 35.56
Forfeited (180) 25.16
December 31, 2011 4,338 $24.78
A V O N 2011 F-25