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77
Notes to the Financial Statements
77
NOTE 16. SHARE-BASED COMPENSATION (Continued)
The total fair value of options that vested during the years ended December 31, 2006, 2005, and 2004, was about
$93 million, $145 million, and $184 million, respectively. We have 203.2 million fully-vested stock options, with a
weighted-average exercise price of $19.81 and remaining term of 4.1 years. We expect 51.4 million stock options (after
forfeitures), with a weighted-average exercise price of $10.14 and remaining term of 8.6 years to vest in the future. The
aggregate intrinsic value is de minimis for unvested and vested options at December 31, 2006.
We received about $4 million from the exercise of stock options in 2006. The tax benefit realized was de minimis. An
equivalent of about $4 million in treasury shares was used to settle exercised options. For options exercised during the
years ended December 31, 2006, 2005, and 2004, the difference between the fair value of the common shares issued
and their respective exercise price was about $1 million, $9 million, and $48 million, respectively.
Compensation cost was as follows (in millions):
  
&RPSHQVDWLRQFRVW 
    
7D[HV 
   
&RPSHQVDWLRQFRVWQHWRIWD[HV 
     
As of December 31, 2006, there was about $38 million in unrealized compensation cost related to non-vested stock
options. This expense will be recognized over a weighted average period of 1.3 years. A summary of the status of our
non-vested shares and changes during 2006 follows:


6KDUHV
PLOOLRQV
:HLJKWHG$YHUDJH
*UDQW'DWH
)DLU9DOXH
1RQYHVWHGEHJLQQLQJRI\HDU  
*UDQWHG   
9HVWHG  
)RUIHLWHGLQFOXGLQJH[SLUDWLRQV   
1RQYHVWHGHQGRI\HDU  
The estimated fair value of stock options at the time of grant using the Black-Scholes option-pricing model was as
follows:
  
)DLUYDOXHSHURSWLRQ    
$VVXPSWLRQV 
$QQXDOL]HGGLYLGHQG\LHOG     
([SHFWHGYRODWLOLW\      
5LVNIUHHLQWHUHVWUDWH     
([SHFWHGRSWLRQWHUPLQ\HDUV   
Details on various stock option exercise price ranges are as follows:
 2XWVWDQGLQJ2SWLRQV ([HUFLVDEOH2SWLRQV


5DQJHRI([HUFLVH3ULFHV
6KDUHV
PLOOLRQV
:HLJKWHG
$YHUDJH/LIH
\HDUV
:HLJKWHG
$YHUDJH
([HUFLVH3ULFH
6KDUHV
PLOOLRQV
:HLJKWHG
$YHUDJH
([HUFLVH3ULFH
        
       
       
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