Kodak 2013 Annual Report Download - page 127

Download and view the complete annual report

Please find page 127 of the 2013 Kodak 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 178

  • 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

Table of Contents
Further information relating to stock options is as follows:
There were no option exercises during 2011, 2012 or 2013.
The fair value of each option award was estimated on the date of grant using the Black-Scholes option valuation model that uses the
assumptions noted in the following table. Expected volatilities were 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 was 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 was calculated using the U.S. Treasury yield curve, and is based on the expected term of the option. Kodak used
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:
No options were granted in 2012 or 2013.
The weighted-average fair value per option granted in 2011 was $1.92.
PAGE 120
Shares
Weighted
-
Average
Under
Range of Price
Exercise
(Amounts in thousands, except per share amounts)
Option
Per Share
Price Per Share
Outstanding on December 31, 2010
18,030
$2.64
-
$
48.34
$
25.22
Granted
2,179
$2.82
-
$
5.22
$
3.41
Exercised
—
N/A
N/A
Terminated, Expired, Surrendered
6,599
$3.40
-
$
65.91
$
31.07
Outstanding on December 31, 2011
13,610
$2.64
-
$
38.04
$
18.89
Granted
—
N/A
N/A
Exercised
—
N/A
N/A
Terminated, Expired, Surrendered
5,670
$3.40
-
$
38.04
$
27.97
Outstanding on December 31, 2012
7,940
$2.64
-
$
36.66
$
12.40
Canceled
7,940
$2.64
-
$
36.66
$
12.40
Outstanding on September 3, 2013
—
—
—
Exercisable on December 31, 2011
10,568
$2.64
-
$
38.04
$
23.25
Exercisable on December 31, 2012
6,456
$2.64
-
$
36.66
$
14.38
For the Year Ended
2011
Weighted-average risk-free interest rate
2.48%
Risk
-
free interest rates
2.2%
-
2.5%
Weighted
-
average expected option lives
6 years
Expected option lives
6 years
Weighted
-
average volatility
59%
Expected volatilities
59%
-
60%
Weighted
-
average expected dividend yield
0.0%
Expected dividend yields
0.0%