Snapple 2009 Annual Report Download - page 125

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The components of stock-based compensation expense for the years ended December 31, 2009, 2008 and
2007, are presented below (in millions):
2009 2008 2007
For the Year Ended December 31,
Plans sponsored by Cadbury. . .......................... $ — $ 3 $ 21
DPS stock options and restricted stock units ................ 19 6 —
Total stock-based compensation expense ................. 19 9 21
Income tax benefit recognized in the income statement ........ (7) (2) (8)
Net stock-based compensation expense .................. $ 12 $ 7 $ 13
Description of Stock-Based Compensation Plans
Omnibus Stock Incentive Plan of 2009
During 2009, the Company adopted the Omnibus Stock Incentive Plan of 2009 (the “2009 Stock Plan”) under
which employees, consultants, and non-employee directors may be granted stock options, stock appreciation rights,
stock awards, or restricted stock units (“RSUs”). This plan provides for the issuance of up to 20,000,000 shares of
the Company’s common stock. Subsequent to adoption, the Company’s Compensation Committee granted RSUs,
which vest after three years.. Each RSU is to be settled for one share of the Company’s common stock on the
respective vesting date of the RSU. No other types of stock-based awards have been granted under the 2009 Stock
Plan. Approximately 20,000,000 shares of the Company’s common stock were available for future grant at
December 31, 2009.
Omnibus Stock Incentive Plan of 2008
In connection with the separation from Cadbury, on May 5, 2008, Cadbury Schweppes Limited, the
Company’s sole stockholder, approved the Company’s Omnibus Stock Incentive Plan of 2008 (the “2008 Stock
Plan”) and authorized up to 9,000,000 shares of the Company’s common stock to be issued under the Stock Plan.
Subsequent to May 7, 2008, the Compensation Committee granted under the 2008 Stock Plan (a) options to
purchase shares of the Company’s common stock, which vest ratably over three years commencing with the first
anniversary date of the option grant, and (b) RSUs, with the substantial portion of RSUs vesting over a three year
period. Each RSU is to be settled for one share of the Company’s common stock on the respective vesting date of the
RSU. The stock options issued under the 2008 Stock Plan have a maximum option term of 10 years.
Employee Stock Purchase Plan
In connection with the separation from Cadbury, on May 5, 2008, Cadbury Schweppes Limited, the
Company’s sole stockholder, approved the Company’s Employee Stock Purchase Plan (“ESPP”) and authorized
up to 2,250,000 shares of the Company’s common stock to be issued under the ESPP. No ESPP has been
implemented and no shares have been issued under that plan.
Stock Options
Because the Company lacks a meaningful set of historical data upon which to develop valuation assumptions,
DPS has elected to develop certain valuation assumptions based on information disclosed by similarly-situated
companies, including multi-national consumer goods companies of similar market capitalization.
The tables below summarize information about the Company’s stock options granted during the years ended
December 31, 2009 and 2008.
105
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)