Boeing 2010 Annual Report Download - page 105

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Share-based plans expense is primarily included in general and administrative expense since it is
incentive compensation issued primarily to our executives. The share-based plans expense and
related income tax benefit follow:
Years ended December 31, 2010 2009 2008
Stock options $96 $111 $119
Restricted stock units and other awards 83 56 29
ShareValue Trust 36 71 61
Share-based plans expense $215 $238 $209
Income tax benefit $83 $89 $79
Stock Options
On February 22, 2010, February 23, 2009 and February 25, 2008, we granted to our executives
5,932,806, 7,423,242 and 6,411,300 options, respectively. The options have been granted with an
exercise price equal to the fair market value of our stock on the date of grant and expire ten years after
the date of grant. The stock options granted after 2005 vest over a period of three years, with 34%
vesting after the first year, 33% vesting after the second year and the remaining 33% vesting after the
third year. If an executive terminates employment for any reason, the non-vested portion of the stock
option will not vest and all rights to the non-vested portion will terminate completely.
Stock option activity for the year ended December 31, 2010 is as follows:
Shares
Weighted
Average
Exercise
Price Per
Share
Weighted
Average
Remaining
Contractual
Life (years)
Aggregate
Intrinsic
Value
Number of shares under option:
Outstanding at beginning of year 26,336,436 $63.93
Granted 6,079,675 63.95
Exercised (2,123,236) 40.96
Forfeited (1,159,701) 55.84
Expired (157,732) 59.35
Outstanding at end of year 28,975,442 $65.96 6.9 $238
Exercisable at end of year 17,262,715 $72.28 5.7 $105
The total intrinsic value of options exercised was $59, $2 and $22 during the years ended
December 31, 2010, 2009 and 2008, respectively. Cash received from options exercised for the years
ended December 31, 2010, 2009 and 2008 was $87, $10 and $44 with a related tax benefit of $20, $1
and $6, respectively, derived from the compensation deductions resulting from these option exercises.
At December 31, 2010, there was $85 of total unrecognized compensation cost related to the Stock
Option plan which is expected to be recognized over a weighted average period of 1.7 years. The total
fair value of stock options vested during the years ended December 31, 2010, 2009 and 2008 was
$103, $114 and $82, respectively.
93