Halliburton 2011 Annual Report Download - page 122

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107
Our Stock and Incentive Plan, as amended (Stock Plan), provides for the grant of any or all of the
following types of stock-based awards:
-
stock options, including incentive stock options and nonqualified stock options;
-
restricted stock awards;
-
restricted stock unit awards;
-
stock appreciation rights; and
-
stock value equivalent awards.
There are currently no stock appreciation rights or stock value equivalent awards outstanding.
Under the terms of the Stock Plan, approximately 133 million shares of common stock have been
reserved for issuance to employees and non-employee directors. At December 31, 2011, approximately 14
million shares were available for future grants under the Stock Plan. The stock to be offered pursuant to the
grant of an award under the Stock Plan may be authorized but unissued common shares or treasury shares.
In addition to the provisions of the Stock Plan, we also have stock-based compensation provisions
under our Restricted Stock Plan for Non-Employee Directors and our Employee Stock Purchase Plan
(ESPP).
Each of the active stock-based compensation arrangements is discussed below.
Stock options
The majority of our options are generally issued during the second quarter of the year. All stock
options under the Stock Plan are granted at the fair market value of our common stock at the grant date.
Employee stock options vest ratably over a three- or four-year period and generally expire 10 years from
the grant date. Compensation expense for stock options is generally recognized on a straight line basis over
the entire vesting period. No further stock option grants are being made under the stock plans of acquired
companies.
The following table represents our stock options activity during 2011.
Weighted Weighted
Average Average Aggregate
Number Exercise Remaining Intrinsic
of Shares Price Contractual Value
Stock Options (in millions) per Share Term (years) (in millions)
Outstanding at January 1, 2011 15.8 $ 26.79
Granted 3.4 43.87
Exercised (3.9) 22.05
Forfeited/expired (0.4) 33.54
Outstanding at December 31, 2011 14.9 $ 31.74 6.7 $ 94
Exercisable at December 31, 2011 8.5 $ 29.07 5.3 $ 68
The total intrinsic value of options exercised was $102 million in 2011, $38 million in 2010, and
$10 million in 2009. As of December 31, 2011, there was $55 million of unrecognized compensation cost,
net of estimated forfeitures, related to nonvested stock options, which is expected to be recognized over a
weighted average period of approximately 2 years.
Cash received from option exercises was $160 million during 2011, $102 million during 2010, and
$74 million during 2009.