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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
97
The table below summarizes stock option activity for the year ended December 31, 2014:
Stock Options
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic Value
(in millions)
Outstanding as of January 1, 2014 2,031,833 $ 37.59 7.65 $ 23
Granted 667,139 51.68
Exercised (1,151,479) 35.40 24
Forfeited or expired (18,258) 46.99
Outstanding as of December 31, 2014 1,529,235 45.27 8.20 40
Exercisable as of December 31, 2014 284,595 38.58 7.01 9
As of December 31, 2014, there were 1,517,946 stock options vested or expected to vest. The weighted average exercise price
of stock options granted for the years ended December 31, 2013 and 2012 was $43.82 and $37.80, respectively. The aggregate
intrinsic value of the stock options exercised for the years ended December 31, 2013 and 2012 was $8 million and $18 million,
respectively. As of December 31, 2014, there was $4 million of unrecognized compensation cost related to unvested stock options
granted under the DPS stock plans that is expected to be recognized over a weighted average period of 0.84 years.
RESTRICTED STOCK UNITS
The table below summarizes RSU activity for the year ended December 31, 2014. The fair value of restricted stock units is
determined based on the number of units granted and the grant date price of common stock.
RSUs
Weighted
Average Grant
Date Fair
Value
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic Value
(in millions)
Outstanding as of January 1, 2014 2,139,143 $ 39.15 1.12 $ 104
Granted 590,347 51.81
Vested and released (730,285) 36.53 38
Forfeited (73,271) 43.76
Outstanding as of December 31, 2014 1,925,934 43.85 1.08 138
The total fair value of RSUs vested was $27 million for the years ended December 31, 2014 and 2013.The total fair value of
RSUs vested was for the year ended December 31, 2012 was $24 million. The aggregate intrinsic value of the RSUs vested and
released for the years ended December 31, 2013 and 2012 was $37 million and $59 million, respectively. As of December 31,
2014, there was $34 million of unrecognized compensation cost related to unvested RSUs granted under the DPS stock plans that
is expected to be recognized over a weighted average period of 1.06 years.
During the year ended December 31, 2014, 730,285 shares subject to previously granted RSUs vested. A majority of these
vested stock awards were net share settled. The Company withheld 239,254 shares based upon the Company's closing stock price
on the vesting date to settle the employees' minimum statutory obligation for the applicable income and other employment taxes.
Subsequently, the Company remitted the required funds to the appropriate taxing authorities.
Total payments for the employees' tax obligations to the relevant taxing authorities were $14 million and $13 million for the
years ended December 31, 2014 and 2013, respectively. There were no payments made to the relevant taxing authorities for the
year ended December 31, 2012 as the Company did not net share settle any vested stock awards. These payments are reflected as
a financing activity within the consolidated statements of cash flows. These payments were used for tax withholdings related to
the net share settlements of RSUs and dividend equivalent units. These payments had the effect of share repurchases by the Company
as they reduced the number of shares that would have otherwise been issued on the vesting date and were recorded as a reduction
of additional paid-in capital.