Danaher 2011 Annual Report Download - page 104

Table of Contents
Option activity under the Company’s stock plans as of December 31, 2011 and changes during the three years ended December 31, 2011 were as follows (in
thousands; except exercise price and number of years):












Outstanding at January 1, 2009 44,168 $25.25
Granted 5,120 $28.59
Exercised (8,642) $14.28
Cancelled (1,852) $ 37.15
Outstanding at December 31, 2009 38,794 $27.57
Granted 4,425 $ 38.26
Exercised (7,028) $19.49
Cancelled (1,371) $33.62
Outstanding at December 31, 2010 34,820 $30.31
Granted 3,807 $50.02
Exercised (4,488) $ 25.73
Cancelled (1,685) $35.62
Outstanding at December 31, 2011 32,454 $ 32.98 5 $467,272
Vested and Expected to Vest at December 31, 2011 (1) 31,679 $ 32.75 5 $462,537
Exercisable at December 31, 2011 19,232 $ 28.71 4 $ 352,544
(1) The “Expected to Vest” options are the net unvested options that remain after applying the pre-vesting forfeiture rate assumption to total unvested options.
Options outstanding at December 31, 2011 are summarized below:
 
Exercise Price
Shares
(thousands)
Average
Exercise Price
Average
Remaining
Life
Shares
(thousands)
Average
Exercise Price
$15.23 to $23.56 5,194 $18.42 1 5,194 $18.42
$23.57 to $31.26 9,815 $28.33 5 6,804 $28.51
$31.27 to $38.81 10,401 $36.25 6 5,387 $35.01
$38.82 to $46.81 3,320 $40.35 7 1,824 $40.14
$46.82 to $55.07 3,724 $50.01 9 23 $50.40
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last
trading day of 2011 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all
option holders exercised their options on December 31, 2011. The amount of aggregate intrinsic value will change based on the price of the Company’s
common stock.
The aggregate intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was approximately $105 million, $151 million
and $151 million, respectively. Exercise of options during the years ended December 31, 2011, 2010 and 2009 resulted in cash receipts of approximately
$114 million, $134 million, and $120 million, respectively. Upon exercise of the award by the employee, the Company derives a tax deduction measured by
the excess of the market value over the grant price at the date stock-based awards are exercised. The Company realized a tax benefit of approximately $33
million, $49 million, and $53 million in 2011, 2010 and 2009, respectively, related to the exercise of employee stock options. The net income tax benefit in
excess of the expense recorded for financial reporting purposes (the “excess tax benefit”) has been recorded as an increase to additional paid-in capital. Excess
tax benefits are reflected as financing cash inflows in the accompanying Consolidated Statement of Cash Flows.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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