GE 2005 Annual Report Download - page 125

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(125)
STOCK OPTIONS OUTSTANDING
(Shares in thousands) Outstanding Exercisable
Exercise price range Shares
Average
life(a)
Average
exercise
price Shares
Average
exercise
price
Under $14.00 10,115 0.5 $ 13.45 10,115 $ 13.45
14.01-21.00 16,390 0.7 14.91 16,390 14.91
21.01-28.00 70,980 4.5 25.72 56,919 25.40
28.01-35.00 46,379 8.5 32.69 10,559 31.85
35.01-42.00 49,327 4.3 37.18 41,329 37.47
42.01-49.00 51,243 5.0 43.30 51,242 43.30
Over $49.00 13,500 4.7 56.88 13,500 56.88
Total 257,934 4.9 $ 33.12 200,054 $ 33.48
At year-end 2004, options with an average exercise price of $29.40 were exercisable on 204 million shares; at year-end 2003, options with an
average exercise price of $24.63 were exercisable on 214 million shares.
(a) Average contractual life remaining in years.
OPTION VALUE INFORMATION(a)
2005 2004 2003
Fair value per option (in dollars)(b) $8.87 $8.33 $9.44
Valuation assumptions
Expected option term (in years) 6 6 6
Expected volatility 28% 28% 35%
Expected dividend yield 2.5 2.5 2.5
Risk-free interest rate 4.1 4.0 3.5
(a) Weighted averages of option grants during each period.
(b) Estimated using Black-Scholes option pricing model.
Note 25
Supplemental Cash Flows Information (Restated)
Changes in operating assets and liabilities are net of acquisitions and dispositions of principal businesses.
Amounts reported in the “Payments for principal businesses purchased” line in the Statement of Cash
Flows is net of cash acquired and included debt assumed and immediately repaid in acquisitions.
Amounts reported in the “All other operating activities” line in the Statement of Cash Flows consists
primarily of adjustments to current and noncurrent accruals and deferrals of costs and expenses, adjustments for
gains and losses on assets, increases and decreases in assets held for sale and adjustments to assets.
Non-cash transactions include the following: in 2005, NBC Universal acquired IAC’ s 5.44% common
interest in VUE for a total purchase price that included $115 million of non-cash consideration, representing the fair
value of future services to be performed by NBC Universal (see note 16); in 2004, the issuance of GE common stock
valued at $10,674 million in connection with the acquisition of Amersham and the issuance of NBC Universal
shares valued at $5,845 million in connection with the combination of NBC and VUE; and in 2003, the acquisition
of Osmonics, Inc. for GE common stock valued at $240 million.