Dow Chemical 2011 Annual Report Download - page 228

134
Employees’ Stock Purchase Plan
Shares in thousands
Outstanding at beginning of year
Granted
Exercised
Forfeited/Expired
Outstanding and exercisable at end of year
2011
Shares
—
10,831
(8,564)
(2,267)
—
Exercise
Price (1)
—
$ 23.00
$ 23.00
$ 23.00
—
(1) Weighted-average per share
Additional Information about ESPP
In millions, except per share amounts
Weighted-average fair value per share of purchase rights granted
Total compensation expense for ESPP
Related tax benefit
Total amount of cash received from the exercise of purchase rights
Total intrinsic value of purchase rights exercised (1)
Related tax benefit
2011
$ 11.39
$ 123
$ 46
$ 197
$ 98
$ 36
2010
$ 11.90
$ 164
$ 61
$ 224
$ 147
$ 54
2009
$ 1.00
$ 10
$ 4
$ 137
$ 38
$ 14
(1) Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights.
Stock Option Plans
Under the 1988 Award and Option Plan (the “1988 Plan”), a plan approved by stockholders, the Company may grant options or
shares of common stock to its employees subject to certain annual and individual limits. The terms of the grants are fixed at the
grant date. At December 31, 2011, there were 24,319,212 shares available for grant under this plan.
Under the 1994 Non-Employee Directors’ Stock Plan, the Company was previously allowed to grant up to 300,000 options
to non-employee directors; however, no additional grants will be made under this plan. At December 31, 2011, there were
19,250 options outstanding under this plan.
Under the 1998 Non-Employee Directors’ Stock Plan, the Company was previously allowed to grant up to 600,000 options
to non-employee directors; however, no additional grants will be made under this plan. At December 31, 2011, there were
53,600 options outstanding under this plan.
The exercise price of each stock option equals the market price of the Company’s stock on the date of grant. Options vest
from one to three years, and have a maximum term of 10 years.
The following table provides stock option activity for 2011:
Stock Options
Shares in thousands
Outstanding at beginning of year
Granted
Exercised
Forfeited/Expired
Outstanding at end of year
Remaining contractual life in years
Aggregate intrinsic value in millions
Exercisable at end of year
Remaining contractual life in years
Aggregate intrinsic value in millions
2011
Shares
60,823
10,607
(5,667)
(2,059)
63,704
$ 173
44,245
$ 99
Exercise
Price (1)
$ 33.85
$ 38.25
$ 25.89
$ 40.54
$ 35.08
5.46
$ 37.30
4.19
(1) Weighted-average per share