Costco 2009 Annual Report Download - page 77

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Summary of Stock Option Activity
The following table summarizes stock option transactions during 2009:
Shares
(in 000’s)
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
(in Years)
Aggregate
Intrinsic
Value(1)
Outstanding at the end of 2008 ........ 21,394 $40.04
Granted ........................ — —
Exercised ...................... (2,539) 39.05
Forfeited or expired .............. (113) 40.77
Outstanding at the end of 2009(2) ...... 18,742 $40.17 3.95 $218
Exercisable at the end of 2009 ......... 16,588 $39.62 3.73 $202
(1) The difference between the original exercise price and market value of common stock at
August 30, 2009.
(2) Stock options generally vest over five years and have a ten-year term.
The following is a summary of stock options outstanding at the end of 2009 (number of options in
thousands):
Options Outstanding Options Exercisable
Range of Prices Number
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price Number
Weighted-
Average
Exercise
Price
$30.41–$37.35 ........... 7,498 3.60 $35.16 7,498 $35.16
$37.44–$43.00 ........... 3,377 1.96 40.45 3,377 40.45
$43.79–$43.79 ........... 5,953 5.59 43.79 4,295 43.79
$45.99–$52.50 ........... 1,914 3.72 48.01 1,418 48.63
18,742 3.95 $40.17 16,588 $39.62
At the end of 2008 and 2007, there were 15,735 and 19,283 options exercisable at weighted average
exercise prices of $39.14 and $38.35, respectively.
The tax benefits realized and intrinsic value related to total stock options exercised during 2009, 2008
and 2007 are provided in the following table:
2009 2008 2007
Actual tax benefit realized for stock options exercised ........ $10 $ 86 $ 66
Intrinsic value of stock options exercised(1) ................ $27 $262 $213
(1) The difference between the original exercise price and market value of common stock measured
at each individual exercise date.
75