Costco 2011 Annual Report Download - page 72

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Summary of Stock Option Activity
The following table summarizes stock option transactions during 2011:
Number Of
Options
(in 000’s)
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic
Value(1)
Outstanding at the end of 2010 ......... 13,162 $39.50
Exercised ....................... (7,245) 39.03
Outstanding and exercisable at the end of
2011 ............................. 5,917 $40.07 2.77 $220
(1) The difference between the exercise price and market value of common stock at August 28, 2011.
The following is a summary of stock options outstanding at the end of 2011:
Options Outstanding and Exercisable
Range of Prices
Number of
Options
(in 000’s)
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
$30.41–$37.35 ................................. 2,446 2.19 $35.38
$37.44–$42.41 ................................. 481 0.67 39.05
$43.79–$43.79 ................................. 2,649 3.59 43.79
$45.99–$46.46 ................................. 341 3.58 46.19
5,917 2.77 $40.07
Options exercisable and the weighted average exercise price at the end of 2010 and 2009:
2010 2009
Options exercisable (shares in 000’s) ............................ 13,032 16,588
Weighted average exercise price ............................... $ 39.43 $ 39.62
The tax benefits realized and intrinsic value related to total stock options exercised during 2011, 2010,
and 2009 are provided in the following table:
2011 2010 2009
Actual tax benefit realized for stock options exercised ......... $ 78 $34 $10
Intrinsic value of stock options exercised(1) ................. $227 $98 $27
(1) The difference between the exercise price and market value of common stock measured at each
individual exercise date.
Employee Tax Consequences on Certain Stock Options
In 2010, the Company recorded a non-recurring benefit of $24 to selling, general and administrative
expense related to a refund of a previously recorded Canadian employee tax liability.
Summary of Restricted Stock Unit Activity
RSUs granted to employees and to non-employee directors generally vest over five years and three
years, respectively; however, the Company provides for accelerated vesting for employees that have
attained twenty-five or more years of service with the Company. Recipients are not entitled to vote or
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