Costco 2013 Annual Report Download - page 66

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64
The following is a summary of stock options outstanding at the end of 2013:
Options Outstanding and Exercisable
Range of Prices(1)
Number of
Options
(in 000’s)
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
$34.71–$40.69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,775 1.36 $ 39.39
$42.73–$43.17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 1.59 42.93
1,947 1.38 $ 39.70
_______________
(1) Prices include the effect of the special cash dividend noted above.
The tax benefits realized, derived from the compensation deductions resulting from the option exercises,
and intrinsic value related to total stock options exercised during 2013, 2012, and 2011 are provided in the
following table:
2013 2012 2011
Actual tax benefit realized for stock options exercised . . . . . . . . . . . . . . . . $ 33 $ 50 $ 78
Intrinsic value of stock options exercised(1) . . . . . . . . . . . . . . . . . . . . . . . . $ 94 $ 137 $ 227
_______________
(1) The difference between the exercise price and market value of common stock measured at each individual exercise date.
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 and non-employee
directors who have attained 25 or more years and five or more years of service with the Company, respectively.
Recipients are not entitled to vote or receive dividends on non-vested and undelivered shares. At the end
of 2013, 11,174,000 shares were available to be granted as RSUs under the Sixth Restated 2002 Plan.
The following awards were outstanding at the end of 2013:
• 9,355,000 time-based RSUs that vest upon continued employment over specified periods of time;
• 726,000 performance-based RSUs, of which 350,000 were granted to certain executive officers
subject to the certification of the attainment of specified performance targets for 2013, which occurred
in September 2013. These RSUs vest upon continued employment over specified periods of time.
The following table summarizes RSU transactions during 2013:
Number of
Units
(in 000’s)
Weighted-Average
Grant Date Fair
Value
Outstanding at the end of 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,260 $ 66.14
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,192 90.99
Vested and delivered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,872) 67.17
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (231) 71.19
Special cash dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732 N/A
Outstanding at the end of 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,081 $ 72.52
The remaining unrecognized compensation cost related to non-vested RSUs at the end of 2013 was $504
and the weighted-average period of time over which this cost will be recognized is 1.7 years. Included in the
outstanding balance at the end of 2013 were approximately 3,100,000 RSUs vested but not yet delivered.