Dow Chemical 2015 Annual Report Download - page 142

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The following table shows the performance deferred stock awards granted:
Performance Deferred Stock Awards Target
Shares
Granted (1)
Grant Date
Fair Value (2) (3)
Shares in thousands
Year Performance Period
2015 January 1, 2015 – December 31, 2017 2,258 $ 59.08
2014 January 1, 2014 – December 31, 2016 2,425 $ 54.42
2013 January 1, 2013 – December 31, 2015 1,321 $ 34.41
(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 in the 2013 grant year and zero to 200
percent of target shares granted in the 2014 and 2015 grant years.
(2) Weighted-average per share.
(3) The 2013 and 2014 grant date fair values have been updated to incorporate the probability
distribution of projected payout outcomes.
The following table shows changes in nonvested performance deferred stock:
Performance Deferred Stock 2015
Shares in thousands
Target
Shares
Granted (1)
Grant Date
Fair Value (2)
Nonvested at January 1, 2015 3,720 $ 47.40
Granted 2,258 $ 59.08
Vested (3) (1,295) $ 34.41
Canceled (62) $ 52.51
Nonvested at December 31, 2015 4,621 $ 56.68
(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 in the 2013 grant year, and zero to 200
percent of target shares granted in the 2014 and 2015 grant years.
(2) Weighted-average per share.
(3) Vested shares for the 2013 - 2015 performance period that were earned (i.e., performance
conditions were satisfied and the target shares granted for the performance period vested)
during the applicable fiscal year. Shares earned will be delivered in February 2016 at the
applicable pay-out percentage. Certain executive employees may opt to receive a cash
payment equal to the value of the stock award on the date of delivery.
Additional Information about Performance Deferred Stock
In millions 2015 2014 2013
Total fair value of performance deferred stock vested and delivered (1) $ 37 $ 12 $ 14
Related tax benefit $ 14 $ 5 $ 5
Total compensation expense for performance deferred stock awards $ 172 $ 67 $ 62
Related tax benefit $ 63 $ 25 $ 23
Shares of performance deferred stock settled in cash (2) 0.3 0.1 0.2
Total cash paid to settle performance deferred stock awards (3) $ 16 $ 6 $ 6
(1) Includes the fair value of shares vested in prior years and delivered in the reporting year.
(2) Performance deferred stock awards vested in prior years and delivered in the reporting year.
(3) Cash paid to certain employees for performance deferred stock awards vested in prior periods and delivered in the
reporting year, equal to the value of the stock award on the date of delivery.
Total unrecognized compensation cost related to performance deferred stock awards of $83 million at December 31, 2015 is
expected to be recognized over a weighted-average period of 0.81 years. At December 31, 2015, approximately 2.4 million
performance deferred shares with a grant date weighted-average fair value of $34.41 per share were vested, but not issued.
These shares are scheduled to be issued in February 2016.
Restricted Stock
Under the 2012 Plan, the Company may grant shares (including options, stock appreciation rights, stock units and restricted
stock) to non-employee directors over the 10-year duration of the program, subject to the plan's aggregate limit as well as
annual individual limits. The restricted stock issued under this plan cannot be sold, assigned, pledged or otherwise transferred