Kodak 2011 Annual Report Download - page 112

The following table summarizes information about stock options as of December 31, 2011:
(Number of options in thousands)
At December 31, 2011, the weighted-average remaining contractual term of all options outstanding and exercisable was 2.78 years and 1.92 years
respectively. There was no intrinsic value of options outstanding and exercisable due to the fact that the market price of the Company's common
stock as of December 31, 2011 was below the weighted-average exercise price of options. There were no option exercises during 2009, 2010, or
2011.
The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted
in the following table. Expected volatilities are based on historical volatility of the Company's stock, management's estimate of implied volatility of
the Company's stock, and other factors. The expected term of options granted is derived from the vesting period of the award, as well as historical
exercise behavior, and represents the period of time that options granted are expected to be outstanding. The risk-free rate is calculated using the U.S.
Treasury yield curve, and is based on the expected term of the option. The Company uses historical data to estimate forfeitures.
The Black-Scholes option pricing model was used with the following weighted-average assumptions for options issued in each year:
The weighted-average fair value per option granted in 2011, 2010, and 2009 was $1.92, $2.16, and $2.06, respectively.
As of December 31, 2011, there was $3 million of total unrecognized compensation cost related to unvested options. The cost is expected to be
recognized over a weighted-average period of 1.7 years.
NOTE 22: ACQUISITIONS
2011
On March 1, 2011, the Company completed the acquisition of substantially all of the assets of the relief plates business of Tokyo Ohka Kogyo Co.,
Ltd. for a purchase price of approximately $27 million, net of cash acquired. The acquisition expands and enhances the Company’s capabilities to
serve customers, particularly in the packaging industry. The acquired relief plates business is part of the Company’s Prepress Solutions group
within the GCG segment. This acquisition was immaterial to the Company's financial position
Options Outstanding Options Exercisable
Range of
Exercise
Weighted
-
Average
Prices
Remaining
At Less Contractual Life Weighted-Average Weighted-Average
Least Than Options (Years) Exercise Price Options Exercise Price
$2
-
$10
6,033
4.70
$
5.27
2,991
$
6.83
$10
-
$30
4,042
1.51
$
24.63
4,042
$
24.63
$30 -
$40
3,535
0.93
$
35.57
3,535
$
35.57
13,610
10,568
For the Year Ended
2011
2010
2009
Weighted
-
average risk
-
free interest rate
2.48%
1.50%
2.63%
Risk
-
free interest rates
2.2%
-
2.5%
1.5%
-
2.9%
1.9%
-
2.7%
Weighted
-
average expected option lives
6 years
6 years
6 years
Expected option lives
6 years
6 years
6 years
Weighted
-
average volatility
59%
57%
45%
Expected volatilities
59%
-
60%
45%
-
58%
45%
Weighted
-
average expected dividend yield
0.0%
0.0%
0.4%
Expected dividend yields
0.0%
0.0%
0.0%
-
7.1%
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