Dow Chemical 2013 Annual Report Download - page 148
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The following table provides stock option activity for 2013:
Stock Options 2013
1988 Plan 2012 Plan
Shares in thousands Shares
Exercise
Price (1) Shares
Exercise
Price (1)
Outstanding at January 1, 2013 68,868 $ 35.82 — $ —
Granted — $ — 17,080 $ 32.16
Exercised (7,700) $ 25.13 — $ —
Forfeited/Expired (1,893) $ 42.15 (57) $ 32.16
Outstanding at December 31, 2013 59,275 $ 37.01 17,023 $ 32.16
Remaining contractual life in years 4.71 9.11
Aggregate intrinsic value in millions $ 476 $ 208
Exercisable at December 31, 2013 47,487 $ 37.45 — $ —
Remaining contractual life in years 3.98 —
Aggregate intrinsic value in millions $ 368 $ —
(1) Weighted-average per share
Additional Information about Stock Options
In millions, except per share amounts 2013 2012 2011
Weighted-average fair value per share of options granted $ 6.99 $ 9.38 $ 10.64
Total compensation expense for stock option plans $ 101 $ 106 $ 88
Related tax benefit $ 37 $ 39 $ 33
Total amount of cash received from the exercise of options $ 188 $ 137 $ 147
Total intrinsic value of options exercised (1) $ 102 $ 64 $ 66
Related tax benefit $ 38 $ 24 $ 24
(1) Difference between the market price at exercise and the price paid by the employee to exercise the options.
Total unrecognized compensation cost related to unvested stock option awards of $72 million at December 31, 2013 is expected
to be recognized over a weighted-average period of 0.89 years.
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.
Deferred Stock
The Company grants deferred stock to certain employees. The grants vest after a designated period of time, generally one to
three years. The Company historically issued grants under the 1988 Plan; however beginning May 10, 2012, grants of deferred
stock are made under the 2012 Plan. The following table shows changes in nonvested deferred stock:
Deferred Stock 2013
1988 Plan 2012 Plan
Shares in thousands Shares
Grant Date
Fair Value (1) Shares
Grant Date
Fair Value (1)
Nonvested at beginning of year 10,957 $ 32.70 209 $ 30.49
Granted — $ — 3,747 $ 32.13
Vested (4,162) $ 27.79 — $ —
Canceled (139) $ 36.60 (24) $ 33.11
Nonvested at end of year 6,656 $ 35.76 3,932 $ 32.05
(1) Weighted-average per share