Freddie Mac 2004 Annual Report Download - page 210
Download and view the complete annual report
Please find page 210 of the 2004 Freddie Mac annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200 -
201 -
202 -
203 -
204 -
205 -
206 -
207 -
208 -
209 -
210 -
211 -
212 -
213 -
214 -
215 -
216 -
217 -
218 -
219 -
220 -
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
-
233
-
234
-
235
-
236
-
237
-
238
-
239
-
240
-
241
-
242
-
243
-
244
-
245
-
246
 |
 |
Table 11.4 provides additional information for stock options outstanding under the Employee Plans and
the Directors' Plan at December 31, 2004 by range of exercise prices.
Table 11.4 Ì Employee Plans and Directors' Plan Stock Options Outstanding
Options Outstanding Options Exercisable
Weighted Average Weighted Weighted
Outstanding at Remaining Contract Average Exercisable at Average
Range of Exercise Prices December 31, 2004 Life in Years Exercise Price December 31, 2004 Exercise Price
$9.00 to 14.99 ÏÏÏÏÏÏÏÏÏÏ 7,960 0.2 $14.67 7,960 $14.67
15.00 to 24.99 ÏÏÏÏÏÏÏÏÏÏ 648,812 1.1 19.81 648,812 19.81
25.00 to 34.99 ÏÏÏÏÏÏÏÏÏÏ 369,271 2.4 34.22 369,271 34.22
35.00 to 44.99 ÏÏÏÏÏÏÏÏÏÏ 919,490 5.0 41.56 695,809 41.60
45.00 to 54.99 ÏÏÏÏÏÏÏÏÏÏ 1,610,027 6.0 50.69 679,337 47.54
55.00 to 64.99 ÏÏÏÏÏÏÏÏÏÏ 3,102,483 7.1 62.13 1,057,661 62.38
65.00 to 68.99 ÏÏÏÏÏÏÏÏÏÏ 969,898 5.3 67.66 559,816 67.70
7,627,941 5.6 $52.94 4,018,666 $47.46
Compensation Expense: Compensation expense related to stock-based compensation plans charged to
Salaries and employee beneÑts was $59 million, $65 million and $66 million for the years ended December 31,
2004, 2003 and 2002, respectively. The recognition of compensation expense aÅects Additional paid-in capital
and, for awards that are probable of cash settlement, Other liabilities.
Table 11.5 summarizes the weighted-average assumptions used in determining the fair value of options
granted under Freddie Mac's stock-based compensation plans using a Black-Scholes option pricing model.
Table 11.5 Ì Assumptions Used to Determine the Fair Value of Options
Employee Stock Employee and Directors' Stock
Purchase Plan Compensation Plans
2004 2003 2002 2004 2003 2002
Dividend yield(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.85% 2.01% 1.56% Ì Ì Ì
Expected life ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3 months 3 months 1 year 7 years 7 years 7 years
Expected volatility ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17.8% 35.0% 21.0% 31.5% 32.0% 32.0%
Risk-free interest rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.33% 0.95% 1.75% 3.55% 3.40% 4.75%
(1) The dividend yield assumption is zero percent for the Employee Plans and Directors' Plan since options granted under these plans
include dividend equivalent rights; thus, the fair value of these options would not be reduced for foregone dividends.
Freddie Mac
198