3M 2009 Annual Report Download - page 119

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113
the vesting period. Substantially all restricted stock unit grants made after 2008 accrue dividends during the vesting
period, which will be paid out in cash at the vest date on all vested restricted stock units. The following table
summarizes restricted stock and restricted stock unit activity during the twelve months ended December 31:
Restricted Stock and Restricted Stock Units
2009 2008
Number of
Awards
Grant Date
Fair Value*
Number of
Awards
Grant Date
Fair Value*
Nonvested balance —.........................................
As of January 1................................................ 2,957,538 $ 77.41 2,001,581 $ 77.63
Granted:
Annual .......................................................... 1,150,819 53.89 924,120 77.23
Other ............................................................ 522,581 54.82 188,473 73.16
Vested.............................................................. (157,104) 73.26 (64,806) 68.72
Forfeited........................................................... (94,354) 69.57 (91,830) 77.76
As of December 31.............................................. 4,379,480 $ 68.85 2,957,538 $ 77.41
* Weighted average
As of December 31, 2009, there was $91 million of compensation expense that has yet to be recognized related to
non-vested restricted stock and restricted stock units. This expense is expected to be recognized over the remaining
vesting period with a weighted-average life of 1.9 years. The total fair value of restricted stock and restricted stock
units that vested during the twelve-month periods ended December 31, 2009, 2008 and 2007, respectively, was $10
million, $4 million and $6 million.
General Employees’ Stock Purchase Plan (GESPP):
In May 1997, shareholders approved 30 million shares for issuance under the Company’s GESPP. Substantially all
employees are eligible to participate in the plan. Participants are granted options at 85% of market value at the date
of grant. There are no GESPP shares under option at the beginning or end of each year because options are granted
on the first business day and exercised on the last business day of the same month.
General Employees’ Stock Purchase Plan
2009 2008 2007
Exercise Exercise Exercise
Shares Price* Shares Price* Shares Price*
Options granted....................... 1,655,936 $ 50.58 1,624,775 $ 62.68 1,507,335 $ 69.34
Options exercised.................... (1,655,936) 50.58 (1,624,775) 62.68 (1,507,335) 69.34
Shares available for grant —
December 31 ....................... 5,659,939 7,315,875 8,940,650
* Weighted average
The weighted-average fair value per option granted during 2009, 2008 and 2007 was $8.93, $11.06 and $12.24,
respectively. The fair value of GESPP options was based on the 15% purchase price discount. The Company
recognized compensation expense for GESSP options of $15 million in 2009 and $18 million in both 2008 and 2007.