Cardinal Health 2011 Annual Report Download - page 100

employees identified based on their option exercise behaviors. Expected volatilities are based on implied
v
o
l
at
ili
ty
f
rom tra
d
e
d
opt
i
ons on our Common S
h
ares an
dhi
stor
i
ca
l
vo
l
at
ili
ty over a per
i
o
d
o
f
t
i
m
e
commensurate with the contractual term of the option
g
rant (7
y
ears). The followin
g
table provides the ran
g
eof
a
ssumptions used for options valued during fiscal 2011, 2010 and 2009
:
2011
2010
(
1
)
2009
R
i
s
k-fr
ee
in
te
r
est
r
ate
..............................
1
.22% –1.70% 1.93% –2.47% 1.
5
2% –3.48
%
Expecte
d lif
e
i
n year
s
.............................. 4.
8
–
5
.2 4.4 –
5
.2 4.
5
–7.
0
Expected volatilit
y
................................
2
7.
0%
–
32
.
0% 32
.
0% 2
7.
0%
–
30
.
0%
Dividend
y
ield
...................................
2
.17% –2.
5
2% 1.96% –2.76% 1.00% –2.33
%
(1) T
h
e range o
f
assumpt
i
ons use
df
or opt
i
ons
i
n
fi
sca
l
2010
d
oes not
i
nc
l
u
d
et
h
e
i
mpact o
f
our stoc
k
opt
i
o
n
e
xc
h
ange program
.
Restricted
S
hares and Restricted
S
hare
U
nits
Th
e
f
a
i
rva
l
ue o
f
restr
i
cte
d
s
h
ares an
d
restr
i
cte
d
s
h
are un
i
ts
i
s
d
eterm
i
ne
db
yt
h
e num
b
er o
f
s
h
ares grante
d
a
n
d
t
h
e
g
rant
d
ate mar
k
et pr
i
ce o
f
our Common S
h
ares
.
T
he following summarizes all transactions related to restricted shares and restricted share units under th
e
P
l
ans
f
rom June 30, 2009 t
h
roug
h
June 30, 2011
:
(
in millions, except per share amounts
)
S
hares
(
1
)
We
i
ghted
Average Grant
Date Fair Valu
e
P
er Share
(
2
)
Nonvested at June 30, 200
9
.............................................. 3.
1
5
7.1
0
G
rante
d
.
............................................................. 2.
1
27.4
3
V
este
d
...............................................................
(1.6) 51.1
1
C
anceled and forfeite
d
..................................................
(0.3) 42.94
Nonvested at June 30, 201
0
..............................................
3
.
3
33
.
33
G
rante
d
.
.............................................................
2
.
0
31
.
42
V
este
d
...............................................................
(1.4) 36.1
1
C
ance
l
e
d
an
df
or
f
e
i
te
d
..................................................
(
0.3
)
32.4
5
Nonvested at June 30, 201
1
.............................................. 3.
6
3
1.3
1
(1) The restricted shares and restricted share units canceled and forfeited activit
y
for fiscal 2010 included th
e
i
mpact o
f
t
h
ea
dj
ustments to outstan
di
ng awar
d
s
i
n connect
i
on w
i
t
h
t
h
eSp
i
n-O
ff
,as
di
scusse
db
e
l
ow
.
(2) Grant
d
ate
f
a
i
rva
l
ues per s
h
are o
f
awar
d
s
g
rante
d
pr
i
or to t
h
e
d
ate o
f
t
h
eSp
i
n-O
ff h
ave not
b
een a
dj
uste
d
t
o
reflect the im
p
act of the S
p
in-Off
.
F
iscal Year Ended June 30
,
(
in millions
)
2
0
11 2
0
1
0
2009
T
otal com
p
ensation cost, net of estimated forfeitures, related to nonvested restricte
d
s
h
are an
d
s
h
are un
i
t awar
d
s not yet recogn
i
ze
d
, pre-tax
.......................
$
55.9
$
57.5
$
100.6
Wei
g
hted-avera
g
e period in
y
ears over which restricted share and share unit cost is
e
xpected to be recognized
.
............................................. 1.7 1.8 1.
8
S
toc
k
O
p
tion Exc
h
ange Progra
m
O
nMa
y
6, 2009, the Board of Directors authorized, and on June 23, 2009, shareholders approved,
a
program that permitted certain current employees to exchange certain outstanding stock options with exercise
pr
i
ces su
b
stant
i
a
ll
ya
b
ove t
h
e current mar
k
et pr
i
ce o
f
our Common S
h
ares
f
or a
l
esser num
b
er o
f
stoc
k
opt
i
on
s
that have a fair value that is lower than the fair value of the “out of the mone
y
” options. The pro
g
ram wa
s
74