Occidental Petroleum 2003 Annual Report Download - page 74

$14.88 -- $21.88 2,883,228 6.1 $ 20.37 2,883,228 $ 20.37
$23.13 -- $26.43 9,945,531 5.7 $ 25.80 6,712,650 $ 25.50
$26.75 -- $31.13 10,183,164 8.5 $ 29.06 2,939,602 $ 26.76
---------------- ------------ ---------------- ---------------- ---------------- ----------------
$14.88 -- $31.13 23,011,923 7.0 $ 26.53 12,535,480 $ 24.62
---------------- ------------ ---------------- ---------------- ---------------- ----------------
RESTRICTED AND PERFORMANCE STOCK PLANS
RESTRICTED STOCK PLANS
Under the restricted stock plans, certain executives are awarded restricted
common stock and the right to receive shares (Share Units). The restricted stock
and Share Units vest between three and five years and are forfeitable under
certain conditions. The Share Units are generally deferred until retirement.
Restricted stock is issued when awarded and is included in both basic and
diluted shares outstanding, while the unvested Share Units are included only in
the diluted shares outstanding. The unvested restricted stock is included in
diluted shares outstanding.
PERFORMANCE STOCK PLANS
Under the performance stock plans, the number of common shares issued at
the end of the performance period of four years will depend upon the attainment
of certain performance objectives, and ranges from 0 to 200 percent of the
target share award. As the amount of expected award is dependent upon actual
performance, these performance awards are variable under APB No. 25 and changes
to the expected award are reflected in income. As the unvested performance stock
awards are contingently issuable shares, they are not included in the
computation of diluted earnings per share calculation.
The number and weighted average grant date value of restricted stock, share
units and performance stock awards were as follows:
2003 2002 2001
=========================================================================== ========== ========== ==========
Restricted stock, share units and performance stock (a) 1,125,612 1,261,421 633,026
Weighted average fair value $ 31.86 $ 26.74 $ 24.51
--------------------------------------------------------------------------- ---------- ---------- ----------
(a) Performance stock award grants assume a 100-percent payout on the date of
grant.
57
NOTE 13 RETIREMENT PLANS AND POSTRETIREMENT BENEFITS
--------------------------------------------------------------------------------
Occidental has various defined benefit and defined contribution retirement
plans for its salaried, domestic union and nonunion hourly, and certain foreign
national employees. Participation in the defined benefit plans is limited and
approximately 1,400 domestic and 500 foreign national employees, mainly union,
non-union hourly and certain acquired employees with grandfathered benefits, are
currently accruing benefits under these plans.
All domestic employees and certain foreign national employees are eligible
to participate in one or more of the defined contribution retirement or savings
plans that provide for periodic contributions by Occidental based on
plan-specific criteria, such as base pay, age level, and/or employee
contributions. Certain salaried employees participate in a supplemental
retirement plan that provides restoration of benefits lost due to governmental
limitations on qualified retirement benefits. The accrued liabilities for the
supplemental retirement plan were $55 million, $52 million and $42 million as of
December 31, 2003, 2002 and 2001, respectively, and Occidental expensed $59
million in 2003, $57 million in 2002 and $57 million in 2001 under the
provisions of these defined contribution and supplemental retirement plans.
Occidental provides medical and dental benefits and life insurance coverage