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136 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 22. SHARE-BASED COMPENSATION (Continued)
As of December 31, 2012, there was about $10 million in unrecognized compensation cost related to non-vested
stock options. This expense will be recognized over a weighted-average period of 1.9 years. A summary of the status of
our non-vested shares and changes during 2012 follows:
Shares
(millions)
Weighted-
Average Grant-
Date Fair Value
Non-vested, beginning of year 17.6 $4.49
Granted 6.4 5.88
Vested (12.4)3.03
Forfeited (0.1)6.63
Non-vested, end of year 11.5 6.79
The estimated fair value of stock options at the time of grant using the Black-Scholes option-pricing model was as
follows:
2012 2011 2010
Fair value per stock option $ 5.88 $8.48 $ 7.21
Assumptions:
Annualized dividend yield 2% —% —%
Expected volatility 53.8%53.2% 53.4%
Risk-free interest rate 1.6% 3.2% 3.0%
Expected stock option term (in years) 7.2 7.1 6.9
Details on various stock option exercise price ranges are as follows:
Outstanding Options Exercisable Options
Range of Exercise Prices
Shares
(millions)
Weighted-
Average
Life
(years)
Weighted-
Average
Exercise
Price
Shares
(millions)
Weighted-
Average
Exercise
Price
$1.96 – $2.84 19.7 6.2 $ 2.11 19.7 $2.11
$5.11 – $8.58 36.2 3.4 7.34 36.2 7.34
$10.11 – $12.98 30.5 4.7 12.52 21.8 12.52
$13.07 – $16.64 21.6 2.6 13.81 18.8 13.66
Total stock options 108.0 96.5
Other Share-Based Awards
Under the 1998 LTIP and 2008 LTIP, we have granted other share-based awards to certain employees. These
awards include restricted stock grants, cash-settled restricted stock units, and stock appreciation rights. These awards
have various vesting criteria which may include service requirements, individual performance targets, and company-wide
performance targets.
Other share-based compensation cost for the years ended December 31 was as follows (in millions):
2012 2011 2010
Compensation cost (a) $ — $ (6) $ 6
__________
(a) Net of tax of $0, $3 million, and $0 in 2012, 2011, and 2010, respectively.