Dow Chemical 2009 Annual Report Download - page 172

Table of Contents
Total unrecognized compensation cost related to deferred stock awards was $63 million at December 31, 2009 and is expected to be recognized over a
weighted-average period of 0.81 years. At December 31, 2009, approximately 212,595 deferred shares with a grant date weighted-average fair value per share
of $33.36 had previously vested, but were not issued. These shares are scheduled to be issued to employees within one to four years or upon retirement.
Also under the 1988 Plan, the Company has granted performance deferred stock awards that vest when the Company attains specified performance
targets over a predetermined period, generally one to three years. Compensation expense related to performance deferred stock awards is recognized over the
lesser of the service or performance period. The following table shows the performance deferred stock awards granted:
Performance Deferred Stock Awards
Shares in
millions Performance Period
Target Shares
Granted (1)
Grant Date Fair
Value (2)
2009 October 1, 2009 – September 30, 2011 1.1 $ 26.39
2009 January 1, 2009 – December 31, 2011 1.2 $ 9.53
2008 January 1, 2008 – December 31, 2010 1.1 $ 38.62
2007 January 1, 2007 – December 31, 2009 1.0 $ 43.59
(1) At the end of the performance period, the actual number of shares issued can range from zero to 250 percent of the target shares granted.
(2) Weighted-average per share
The following table shows changes in nonvested performance deferred stock:
Performance Deferred Stock 2009
Shares in thousands Shares
Grant Date
Fair Value (1)
Nonvested at beginning of year 1,995 $ 40.95
Granted 2,339 $ 18.02
Vested (927) $ 43.59
Canceled (51) $ 21.39
Nonvested at end of year 3,356 $ 24.54
(1) Weighted-average per share
Additional Information about Performance Deferred Stock
In millions 2009 2008 2007
Total fair value of performance deferred stock vested and delivered (1) $ 1 $ 166 $ 127
Related tax benefit - $ 62 $ 47
Total compensation expense for performance deferred stock awards $ (7) $ 17 $ 69
Related tax benefit $ (2) $ 6 $ 26
(1) Includes the fair value of shares vested in prior years and delivered in the reporting year.
During the second quarter of 2008, the Company settled 0.9 million shares of performance deferred stock for $35 million in cash. Total unrecognized
compensation cost related to performance deferred stock awards was $28 million at December 31, 2009 and is expected to be recognized over a weighted-
average period of 0.96 years. At December 31, 2009, approximately 0.6 million performance deferred shares with a grant date weighted-average fair value of
$43.59 per share were vested, but not issued. These shares are scheduled to be issued in April 2010.
In addition, the Company is authorized to grant up to 300,000 deferred shares of common stock to executive officers of the Company under the 1994
Executive Performance Plan.
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