Dow Chemical 2013 Annual Report Download - page 149

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127
Additional Information about Deferred Stock
In millions, except per share amounts 2013 2012 2011
Weighted-average fair value per share of deferred stock granted $ 32.13 $ 33.81 $ 37.60
Total fair value of deferred stock vested and delivered (1) $ 137 $ 252 $ 123
Related tax benefit $ 51 $ 93 $ 46
Total compensation expense for deferred stock awards $ 104 $ 129 $ 124
Related tax benefit $ 39 $ 48 $ 46
(1) Includes the fair value of shares vested in prior years and delivered in the reporting year.
Total unrecognized compensation cost related to deferred stock awards of $85 million at December 31, 2013 is expected to be
recognized over a weighted-average period of 0.88 years. At December 31, 2013, approximately 71,903 deferred shares with a
grant date weighted-average fair value per share of $34.99 had previously vested, but were not issued. These shares are
scheduled to be issued to employees within one to three years or upon retirement.
The Company historically granted performance deferred stock awards under the 1988 Plan. The 2012 Plan supersedes the 1988
Plan. Under both plans, the performance deferred stock awards vest when the Company attains specified performance targets
over a predetermined period, generally one to three years. Compensation expense related to performance deferred stock awards
is recognized over the lesser of the service or performance period. Changes in the fair value of liability instruments are
recognized as compensation expense each quarter. The following table shows the performance deferred stock awards granted:
Performance Deferred Stock Awards Target
Shares
Granted (1)
Grant Date
Fair Value (2)
Shares in thousands
Year Plan Performance Period
2013 2012 Plan January 1, 2013 - December 31, 2015 1,321 $ 32.16
2012 1988 Plan January 1, 2012 – December 31, 2014 1,205 $ 34.00
2011 1988 Plan January 1, 2011 – December 31, 2013 1,109 $ 38.07
(1) At the end of the performance period, the actual number of shares issued can range from zero to
250 percent of the target shares granted.
(2) Weighted-average per share
The following table shows changes in nonvested performance deferred stock:
Performance Deferred Stock 2013
1988 Plan 2012 Plan
Shares in thousands
Target
Shares
Granted (1)
Grant Date
Fair Value (2)
Target
Shares
Granted (1)
Grant Date
Fair Value (2)
Nonvested at beginning of year 2,254 $ 35.92 —$ —
Granted — $ — 1,321 $ 32.16
Vested (1,065) $ 38.06 — $ —
Canceled (1) $ 37.57 (5) $ 32.16
Nonvested at end of year 1,188 $ 34.00 1,316 $ 32.16
(1) At the end of the performance period, the actual number of shares issued can range from zero to 250 percent of the target
shares granted.
(2) Weighted-average per share
Additional Information about Performance Deferred Stock
In millions 2013 2012 2011
Total fair value of performance deferred stock vested and delivered (1) $ 14 $ 68 $ 77
Related tax benefit $ 5 $ 25 $ 28
Total compensation expense for performance deferred stock awards $ 62 $ 21 $ 36
Related tax benefit $ 23 $ 8 $ 13
(1) Includes the fair value of shares vested in prior years and delivered in the reporting year.