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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
A summary of DPS’ stock option activity for the year ended December 31, 2010, is as follows:
Number outstanding at January 1, 2010
Granted
Exercised
Forfeited or expired
Outstanding at December 31, 2010
Exercisable at December 31, 2010
Stock Options
2,178,211
855,403
(297,759)
(102,920)
2,632,935
803,477
Weighted
Avergage
Exercise Price
$ 18.97
32.36
20.66
18.86
23.14
21.15
Weighted
Average
Remaining
Contractual
Term (Years)
8.79
8.22
7.64
Aggregate
Intrinsic Value
(in millions)
$20
5
32
11
As of December 31, 2010, there were 2,560,809 stock options vested or expected to vest. The weighted average exercise price
of stock options granted for the years ended December 31, 2009 and 2008 was $13.48 and $25.30, respectively.As of December 31,
2010, there was $7 million of unrecognized compensation costs related to the nonvested stock options granted under the Plan.
That cost is expected to be recognized over a weighted-average period of 2.05 years.
Restricted Stock Units
The tables below summarize information about the restricted stock units granted during the year ended December 31, 2010.
The fair value of restricted stock units is determined based on the number of units granted and the grant date price of common
stock.
A summary of the Company's restricted stock activity for the year ended December 31, 2010 is as follows:
Number outstanding at January 1, 2010
Granted
Vested and released
Forfeited or expired
Outstanding at December 31, 2010
Restricted
Stock Units
2,688,551
984,290
(134,309)
(157,916)
3,380,616
Weighted
Avergage
Grant Date
Fair Value
$ 17.43
31.95
20.05
19.76
21.45
Weighted
Average
Remaining
Contractual
Term (Years)
1.91
1.31
Aggregate
Intrinsic Value
(in millions)
$76
119
The total fair value of restricted stock units vested for the years ended December 31, 2010 and 2009 was $5 million and $1
million, respectively. No restricted stock units vested in 2008. As of December 31, 2010, there was $35 million of unrecognized
compensation costs related to nonvested restricted stock units granted under the Plan. That cost is expected to be recognized over
a weighted-average period of 1.90 years.
Modifications of Share-Based Awards
On October 26, 2009, the Company's Compensation Committee approved a letter agreement between the Company and a
former officer of the Company regarding his early retirement and separation from the Company. Under the terms of the letter
agreement, the vesting of a portion of the officer's remaining unvested stock options and restricted stock units granted under the
2008 Stock Plan was accelerated and became fully vested in 2010. There was no incremental compensation cost associated with
the modification.
During the fourth quarter of 2009, DPS’Compensation Committee approved a modification to amend all outstanding individual
RSU agreements as of November 19, 2009, to allow for individual RSU awards to participate in dividends in the event of a dividend
declaration, which affected approximately 600 employees. As a result of the modification, the Company recorded an additional
$1 million in stock-based compensation expense during the fourth quarter of 2009, with an additional $1 million to be recognized
prospectively over the weighted average remaining term of those individual RSU awards as of December 31, 2010.
99