Dow Chemical 2015 Annual Report Download - page 140

130
Employee Stock Purchase Plan 2015
Shares in thousands Shares
Exercise
Price (1)
Outstanding and exercisable at January 1, 2015 16 $ 38.13
Granted 3,183 $ 41.49
Exercised (3,148) $ 41.48
Forfeited/Expired (44) $ 40.69
Outstanding and exercisable at December 31, 2015 7 $ 41.49
(1) Weighted average price per share
Additional Information about Employee Stock Purchase Plan
In millions, except per share amounts 2015 2014 2013
Weighted-average fair value per share of purchase rights granted $ 4.62 $ 5.45 $ 7.20
Total compensation expense for ESPP $ 15 $ 20 $ 60
Related tax benefit $ 5 $ 7 $ 22
Total amount of cash received from the exercise of purchase rights $ 131 $ 138 $ 198
Total intrinsic value of purchase rights exercised (1) $ 25 $ 42 $ 68
Related tax benefit $ 9 $ 15 $ 25
(1) Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights.
Stock Incentive Plan
The Company has historically granted equity awards under various plans (the "Prior Plans"). On February 9, 2012, the Board of
Directors authorized The Dow Chemical Company 2012 Stock Incentive Plan (the "2012 Plan"), which was approved by
stockholders at the Company's annual meeting on May 10, 2012 ("Original Effective Date") and became effective on that date.
On February 13, 2014, the Board of Directors adopted The Dow Chemical Company Amended and Restated 2012 Stock
Incentive Plan (the "2012 Restated Plan"). The 2012 Restated Plan was approved by stockholders at the Company's annual
meeting on May 15, 2014 and became effective on that date. The Prior Plans were superseded by the 2012 Plan and the 2012
Restated Plan (collectively, the "2012 Plan"). Under the 2012 Plan, the Company may grant options, deferred stock,
performance deferred stock, restricted stock, stock appreciation rights and stock units to employees and non-employee directors
until the tenth anniversary of the Original Effective Date, subject to an aggregate limit and annual individual limits. The terms
of the grants are fixed at the grant date. At December 31, 2015, there were 56,905,984 shares available for grant under the 2012
Plan.
Stock Options
The Company grants stock options to certain employees, subject to certain annual and individual limits, with terms of the
grants fixed at the grant date. The exercise price of each stock option equals the market price of the Company’s stock on the
grant date. Options vest from one to three years, and have a maximum term of 10 years.
The following table summarizes stock option activity for 2015:
Stock Options 2015
Shares in thousands Shares
Exercise
Price (1)
Outstanding at January 1, 2015 53,647 $ 36.05
Granted 3,024 $ 49.44
Exercised (11,226) $ 36.06
Forfeited/Expired (3,984) $ 51.94
Outstanding at December 31, 2015 41,461 $ 35.50
Remaining contractual life in years 5.50
Aggregate intrinsic value in millions $ 662
Exercisable at December 31, 2015 30,992 $ 34.02
Remaining contractual life in years 4.75
Aggregate intrinsic value in millions $ 541
(1) Weighted-average per share.