CVS 2015 Annual Report Download - page 88

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86 CVS Health
Notes to Consolidated Financial Statements
As of December 31, 2015, unrecognized compensation expense related to unvested options totaled $91 million,
which the Company expects to be recognized over a weighted-average period of 1.72 years. After considering
anticipated forfeitures, the Company expects approximately 12 million of the unvested stock options to vest over
the requisite service period.
The following table is a summary of the Company’s stock option activity for the year ended December 31, 2015:
Weighted
Weighted Average
Average Remaining Aggregate
SHARES IN THOUSANDS Shares Exercise Price Contractual Term Intrinsic Value
Outstanding at December 31, 2014 28,166 $ 47.87
Granted 3,772 $ 102.25
Exercised (6,425) $ 40.68
Forfeited (902) $ 66.81
Expired (270) $ 38.03
Outstanding at December 31, 2015
24,341
$ 57.60
3.88
$ 993,965,110
Exercisable at December 31, 2015
11,847 $ 42.17 2.66 $
658,732,653
Vested at December 31, 2015 and expected
to vest in the future
23,765 $ 56.96 3.84 $
984,746,487
11 | Income Taxes
The income tax provision for continuing operations consisted of the following for the years ended December 31:
IN MILLIONS 2015 2014 2013
Current:
Federal
$ 3,065
$ 2,581 $ 2,623
State
555
495 437
3,620
3,076 3,060
Deferred:
Federal
(180)
(43) (115)
State
(54)
— (17)
(234)
(43) (132)
Total
$ 3,386
$ 3,033 $ 2,928
The following table is a reconciliation of the statutory income tax rate to the Company’s effective income tax rate for
continuing operations for the years ended December 31:
2015 2014 2013
Statutory income tax rate
35.0 %
35.0 % 35.0 %
State income taxes, net of federal tax benefit
4.0
4.3 4.0
Other
0.3
0.2 (0.1)
Effective income tax rate
39.3 %
39.5 % 38.9 %