Comerica 2009 Annual Report Download - page 122

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Comerica Incorporated and Subsidiaries
Diluted income (loss) from continuing operations per common share and net income (loss) per common
share consider common stock issuable under the assumed exercise of stock options granted under the
Corporation’s stock plans and a warrant. Diluted income (loss) from continuing operations attributable to
common shares and net income (loss) attributable to common shares are then divided by the total of weighted-
average number of common shares and common stock equivalents outstanding during the period.
The following average shares related to outstanding options and a warrant to purchase shares of common
stock were not included in the computation of diluted net income (loss) per common share because the options’
and warrant’s exercise prices were greater than the average market price of common shares for the period.
2009 2008 2007
(shares in millions)
Average shares related to outstanding options
and warrant ........................ 29.1 19.7 10.3
Range of exercise prices ................. $28.07 – $66.81 $33.69 – $71.58 $56.00 – $71.58
Due to the net loss attributable to common shares reported for the year ended December 31, 2009, options
to purchase 1.5 million shares, with average exercise prices less than the average market price of common shares
for the period, were excluded from the computation of diluted net loss per share, as their inclusion would have
been anti-dilutive.
Note 18 — Share-Based Compensation
Share-based compensation expense is charged to ‘‘salaries’’ expense on the consolidated statements of
income. The components of share-based compensation expense for all share-based compensation plans and
related tax benefits are as follows:
2009 2008 2007
(in millions)
Total share-based compensation expense ................................. $32 $51 $59
Related tax benefits recognized in net income .............................. $12 $19 $21
The following table summarizes unrecognized compensation expense for all share-based plans:
December 31,
2009
(dollar amount
in millions)
Total unrecognized share-based compensation expense ........................... $35
Weighted-average expected recognition period (in years) .......................... 2.7
The Corporation has share-based compensation plans under which it awards both shares of restricted stock
to key executive officers and key personnel and stock options to executive officers, directors and key personnel
of the Corporation and its subsidiaries. Restricted stock vests over periods ranging from three years to five years.
Stock options vest over periods ranging from one year to four years. During the period the U.S. Treasury holds
equity issued under the Capital Purchase Program, restricted share grants may not vest in less than two years
from the grant date and retirement-based acceleration is not allowed. These restrictions lengthen the requisite
service period and, therefore, the amortization period for retirement eligible grantees. The maturity of each
option is determined at the date of grant; however, no options may be exercised later than ten years and one
month from the date of grant. The options may have restrictions regarding exercisability. The plans originally
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