Using information from Coca Cola, Inc.s Note 9 to financial statements, given below, determine the following: 1.

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Using information from Coca Cola, Inc.’s Note 9 to financial statements, given below, determine the following:

1. Total compensation expense relating to options already granted that will be recognised in future years as options vest.

2. Approximate compensation expense in 2010 and 2011 relating to options already granted.

Excerpts from Note 9: Stock Compensation Plans in the Notes to Financial Statements of Coca Cola, Inc.
NOTE 9: STOCK COMPENSATION PLANS

Our Company grants stock options and restricted stock awards to certain employees of the Company. Total stock-based compensation expense was approximately $241 million in 2009, $266 million in 2008 and $313 million in 2007 and was included as a component of selling, general and administrative expenses in our consolidated statements of income. The total income tax benefit recognised in our consolidated statements of income for share-based compensation arrangements was approximately $68 million, $72 million and $91 million for 2009, 2008 and 2007, respectively.

As of December 31, 2009, we had approximately $335 million of total unrecognised compensation cost related to nonvested share-based compensation arrangements granted under our plans. This cost is expected to be recognised over a weighted-average period of 1.7 years as stock-based compensation expense. This expected cost does not include the impact of any future stock based compensation awards.

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International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

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