Dow Chemical 2015 Annual Report Download - page 141
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131
Additional Information about Stock Options
In millions, except per share amounts 2015 2014 2013
Weighted-average fair value per share of options granted $ 11.61 $ 11.49 $ 6.99
Total compensation expense for stock option plans $ 55 $ 65 $ 101
Related tax benefit $ 20 $ 24 $ 37
Total amount of cash received from the exercise of options $ 377 $ 810 $ 188
Total intrinsic value of options exercised (1) $ 175 $ 300 $ 102
Related tax benefit $ 65 $ 111 $ 38
(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 $20 million at December 31, 2015 is expected
to be recognized over a weighted-average period of 0.74 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 following table shows changes in nonvested deferred stock:
Deferred Stock 2015
Shares in thousands Shares
Grant Date
Fair Value (1)
Nonvested at January 1, 2015 9,352 $ 36.45
Granted 2,168 $ 49.42
Vested (3,339) $ 33.95
Canceled (202) $ 39.07
Nonvested at December 31, 2015 7,979 $ 40.96
(1) Weighted-average per share.
Additional Information about Deferred Stock
In millions, except per share amounts 2015 2014 2013
Weighted-average fair value per share of deferred stock granted $ 49.42 $ 46.88 $ 32.13
Total fair value of deferred stock vested and delivered (1) $ 162 $ 156 $ 137
Related tax benefit $ 60 $ 58 $ 51
Total compensation expense for deferred stock awards $ 110 $ 99 $ 104
Related tax benefit $ 41 $ 37 $ 39
(1) Includes the fair value of shares vested in prior years and delivered in the reporting year.
Total unrecognized compensation cost related to deferred stock awards of $81 million at December 31, 2015 is expected to be
recognized over a weighted-average period of 0.85 years. At December 31, 2015, approximately 30,794 deferred shares with a
grant date weighted-average fair value per share of $37.62 had previously vested, but were not issued. These shares are
scheduled to be issued to employees within one to three years or upon retirement.
Performance Deferred Stock
The Company grants performance deferred stock to certain employees. The grants vest when the Company attains specified
performance targets, such as return on capital and relative total shareholder return, 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. Changes in the fair value of liability instruments are recognized as compensation expense each quarter.