Mondelez 2012 Annual Report Download - page 92

Table of Contents
In February 2012, as part of our annual equity program, we granted 12.8 million stock options to eligible employees at an exercise
price of $38.00 on the grant date. During 2012, we issued 0.7 million of additional stock options with a weighted-average exercise
price of $37.60 per share. In the aggregate, we granted 13.5 million stock options during 2012 at a weighted-
average exercise price
of $37.97.
In February 2011, as part of our annual equity program, we granted 15.8 million stock options to eligible employees at an exercise
price of $31.83 on the grant date. During 2011, we issued 0.5 million of additional stock options with a weighted-average exercise
price of $31.22 per share. In the aggregate, we granted 16.3 million stock options during 2011 at a weighted-
average exercise price
of $31.81.
In February 2010, as part of our annual equity program, we granted 15.0 million stock options to eligible employees at an exercise
price of $29.15 on the grant date. During 2010, we issued 3.1 million additional stock options with a weighted-average exercise
price of $29.73 per share. In the aggregate, we granted 18.1 million stock options during 2010 at a weighted-
average exercise price
of $29.24, including options issued to Cadbury employees under our annual equity program.
The total intrinsic value of options exercised was $93 million in 2012, $98 million in 2011 and $92 million in 2010. Cash received
from options exercised was $205 million in 2012, $486 million in 2011 and $134 million in 2010. The actual tax benefit realized for
the tax deductions from the option exercises totaled $21 million in 2012, $40 million in 2011 and $60 million in 2010.
Restricted and Deferred Stock:
We may grant shares of restricted or deferred stock to eligible employees, giving them, in most instances, all of the rights of
shareholders, except that they may not sell, assign, pledge or otherwise encumber the shares. Shares of restricted and deferred
stock are subject to forfeiture if certain employment conditions are not met. Restricted and deferred shares generally vest on the
third anniversary of the grant date.
Shares granted in connection with our long-term incentive plan vest based on varying performance, market and service conditions.
The unvested shares have no voting rights and do not pay dividends.
The fair value of the restricted and deferred shares at the date of grant is amortized to earnings over the restriction period. We
recorded compensation expense related to restricted and deferred stock of $90 million in 2012, $95 million in 2011 and $93 million
in 2010 in our results from continuing operations. The deferred tax benefit recorded related to this compensation expense was $27
million in 2012, $28 million in 2011 and $28 million in 2010. The unamortized compensation expense related to our restricted and
deferred stock was $115 million at December 31, 2012 and is expected to be recognized over a weighted-average period of
2 years.
Our restricted and deferred stock activity for the year ended December 31, 2012 is reflected below. As a result of the Spin-Off,
there was no impact on the number of shares granted. The grant price information for restricted and deferred stock awarded prior to
the Record Date reflects historical market prices which were not adjusted to reflect the Spin-Off.
89
Number of
Shares
Weighted
-
Average
Grant Date
Fair Value
Per Share
Balance at January 1, 2012
13,617,173
$
28.43
Granted
4,962,551
35.25
Vested
(5,007,098
)
24.80
Forfeited
(1,275,617
)
29.22
Adjustment due to the Spin
-
Off
518,902
19.72
Balance at December 31, 2012
12,815,911
21.55
(1)
Due to restrictions stemming from local laws, taxes or other regulatory matters, certain employees who previously held restricted or deferred shares may no
longer hold the stock awards from Kraft Foods Group. As such, their stock awards were converted into an equivalent amount of additional Mondelēz
International stock awards in order to preserve the fair value of the overall stock award that was granted.
(1)