Mondelez 2014 Annual Report Download - page 97

Table of Contents
Stock option activity is reflected below:
Restricted Stock and Deferred Stock Units:
We may grant shares of restricted stock or deferred stock units to eligible employees, giving them, in most instances, all of the
rights of shareholders, except that they may not sell, assign, pledge or otherwise encumber the shares and our deferred stock units
do not have voting rights until vested. Shares of restricted stock and deferred stock units are subject to forfeiture if certain
employment conditions are not met. Restricted stock and deferred stock units generally vest on the third anniversary of the grant
date.
Performance share units granted in connection with our long-term incentive plan (“LTIP”) vest based on varying performance,
market and service conditions. The unvested share units have no voting rights and do not pay dividends. Dividend equivalents
accumulated over the vesting period are paid after the share units vest.
The fair value of the restricted stock and deferred stock units at the date of grant is amortized to earnings over the restriction period.
We recorded compensation expense related to restricted stock and deferred stock units of $94 million in 2014, $94 million in 2013
and $90 million in 2012 in our results from continuing operations. The deferred tax benefit recorded related to this compensation
expense was $26 million in 2014, $28 million in 2013 and $27 million in 2012. The unamortized compensation expense related to
our restricted stock and deferred stock units was $128 million at December 31, 2014 and is expected to be recognized over a
weighted
-average period of 2 years.
94
Weighted
-
Average
Average
Shares Subject
Exercise or
Grant Price
Remaining
Contractual
Aggregate
Intrinsic
to Option
Per Share
Term
Value
Balance at January 1, 2012
49,598,867
$
28.87
Annual grant to eligible employees
12,816,380
38.00
Additional options issued
696,459
37.60
Total options granted
13,512,839
37.97
Options exercised
(1)
(8,168,062
)
26.39
$
93 million
Options cancelled
(2,440,601
)
30.20
Adjustment due to the Spin
-
Off
(2)
249,996
19.59
Balance at December 31, 2012
52,753,039
20.45
$
264 million
Annual grant to eligible employees
11,644,280
27.05
Additional options issued
762,512
29.69
Total options granted
12,406,792
27.21
Options exercised
(1)
(7,185,616
)
19.41
$
79 million
Options cancelled
(2,190,776
)
23.86
Balance at December 31, 2013
55,783,439
21.96
$
744 million
Annual grant to eligible employees
9,919,810
34.17
Additional options issued
500,250
33.65
Total options granted
10,420,060
34.14
Options exercised
(1)
(8,076,550
)
20.85
$
125 million
Options cancelled
(1,695,398
)
27.65
Balance at December 31, 2014
56,431,551
24.19
7 years
$
685 million
Exercisable at December 31, 2014
34,811,236
20.66
6 years
$
545 million
(1) Cash received from options exercised was $168 million in 2014, $139 million in 2013 and $205 million in 2012. The actual tax benefit realized for
the tax deductions from the option exercises totaled $29 million in 2014, $14 million in 2013 and $21 million in 2012.
(2) In 2012, as a result of the Spin-Off, existing employee stock option awards were converted into an equivalent amount of additional Mondelēz
International stock options in order to preserve the fair value of the overall stock option awards granted.