Kodak 2006 Annual Report Download - page 115

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NOTE 20: STOCK OPTION AND COMPENSATION PLANS
The Company’s stock incentive plans consist of the 2005 Omnibus Long-Term Compensation Plan (the 2005 Plan), the 2000 Omnibus Long-Term
Compensation Plan (the 2000 Plan), and the 1995 Omnibus Long-Term Compensation Plan (the 1995 Plan). The Plans are administered by the Execu-
tive Compensation and Development Committee of the Board of Directors.
Under the 2005 Plan, 11 million shares of the Company’s common stock may be granted to employees between January 1, 2005 and December 31,
2014. This share reserve may be increased by: shares that are forfeited pursuant to awards made under the 1995 and 2000 Plans; shares retained for
payment of tax withholding; shares issued in connection with reinvestments of dividends and dividend equivalents; shares delivered for payment or
satisfaction of tax withholding; shares reacquired on the open market using option exercise price cash proceeds; and awards that otherwise do not re-
sult in the issuance of shares. The 2005 Plan is substantially similar to and is intended to replace the 2000 Plan, which expired on January 18, 2005.
Stock options are generally non-qualified and are issued at prices not less than 100% of the per share fair market value on the date of grant. Options
granted under the 2005 Plan generally expire seven years from the date of grant, but may be forfeited or canceled earlier if the optionee’s employment
terminates prior to the end of the contractual term. The 2005 Plan also provides for Stock Appreciation Rights (SARs) to be granted, either in tandem
with options or freestanding. SARs allow optionees to receive payment equal to the increase in the market price of the Company’s stock from the
grant date to the exercise date. At December 31, 2006, 8,000 freestanding SARs were outstanding under the 2005 Plan at option prices ranging from
$24.59 to $25.58. Compensation expense recognized in 2006 on those freestanding SARs was not material.
Under the 2000 Plan, 22 million shares of the Company’s common stock were eligible for grant to a variety of employees between January 1, 2000
and December 31, 2004. The 2000 Plan is substantially similar to, and was intended to replace, the 1995 Plan, which expired on December 31, 1999.
Stock options are generally non-qualified and are at prices not less than 100% of the per share fair market value on the date of grant, and the options
generally expire ten years from the date of grant, but may expire sooner if the optionee’s employment terminates. The 2000 Plan also provides for
SARs to be granted, either in tandem with options or freestanding. At December 31, 2006, 47,138 freestanding SARs were outstanding under the 2000
Plan at option prices ranging from $23.25 to $60.50. Compensation expense recognized in 2006 on those freestanding SARs was not material.
Under the 1995 Plan, 22 million shares of the Company’s common stock were eligible for grant to a variety of employees between February 1, 1995
and December 31, 1999. Stock options are generally non-qualified and are at prices not less than 100% of the per share fair market value on the date
of grant, and the options generally expire ten years from the date of grant, but may expire sooner if the optionee’s employment terminates. The 1995
Plan also provides for SARs to be granted, either in tandem with options or freestanding. At December 31, 2006, 144,399 freestanding SARs were
outstanding under the 1995 Plan at option prices ranging from $31.30 to $90.63. Compensation expense recognized in 2006 on those freestanding
SARs was not material.
In addition, the 2005 Plan, the 2000 Plan, and the 1995 Plan provide for, but are not limited to, grants of unvested stock and performance awards.
Compensation expense recognized in 2006 for these awards, based on their fair value, was not material.
Further information relating to stock options is as follows:
Weighted-Average
Exercise
(Amounts in thousands, except per share amounts) Shares Under Option Range of Price Per Share Price Per Share
Outstanding on December 31, 2003 39,549 $22.58 – $92.31 $48.30
Granted 800 $24.92 – $33.32 $30.18
Exercised 157 $22.58 – $31.30 $30.84
Terminated, Canceled or Surrendered 2,982 $22.58 – $75.66 $41.70
Outstanding on December 31, 2004 37,210 $22.58 – $92.31 $48.51
Granted 1,852 $22.03 – $31.57 $25.89
Exercised 389 $22.58 – $31.88 $30.68
Terminated, Canceled or Surrendered 2,630 $23.25 – $83.19 $48.53
Outstanding on December 31, 2005 36,043 $22.03 – $92.31 $47.54
Granted 1,605 $20.12 – $27.70 $25.48
Exercised 20 $22.58 – $26.71 $24.97
Terminated, Canceled or Surrendered 3,017 $22.03 – $83.19 $58.46
Outstanding on December 31, 2006 34,611 $20.12 – $92.31 $45.57
Exercisable on December 31, 2004 33,196 $22.58 – $92.31 $50.32
Exercisable on December 31, 2005 32,330 $22.58 – $92.31 $49.69
Exercisable on December 31, 2006 31,548 $22.58 – $92.31 $47.44