Honeywell 2004 Annual Report Download - page 93

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
The following table summarizes information about stock option activity for the three years ended December 31, 2004:
Number of
Options
Weighted
Average
Exercise
Price
Outstanding at December 31, 2001 53,879,625 $ 39.37
Granted 2,996,005 33.61
Exercised (1,692,005) 18.15
Lapsed or canceled (3,168,916) 43.14
Outstanding at December 31, 2002 52,014,709 39.50
Granted 9,372,850 23.70
Exercised (2,361,930) 18.34
Lapsed or canceled (4,735,283) 39.58
Outstanding at December 31, 2003 54,290,346 37.68
Granted 9,409,800 35.49
Exercised (2,947,232) 21.20
Lapsed or canceled (2,433,985) 39.41
Outstanding at December 31, 2004 58,318,929 38.09
The following table summarizes information about stock options outstanding and exercisable at December 31, 2004:
Options Outstanding Options Exercisable
Range of exercise prices
Number
Outstanding
Weighted
Average
Life(1)
Weighted
Average
Exercise
Price
Number
Exercisable
Weighted
Average
Exercise
Price
$17.79–$29.86 11,088,429 6.3 $ 23.67 6,151,309 $ 23.66
$30.03–$39.94 30,819,327 6.5 35.90 20,812,117 36.17
$40.02–$49.97 9,156,099 4.0 43.47 9,124,599 43.48
$50.13–$66.73 7,255,074 4.9 62.62 7,255,074 62.62
58,318,929 5.9 38.09 43,343,099 40.36
(1) Average remaining contractual life in years.
There were 40,547,240 and 38,179,208 options exercisable at weighted average exercise prices of $41.14 and $39.58 at December
31, 2003 and 2002, respectively. There were 20,173,109 shares available for future grants under the terms of our stock option plans at
December 31, 2004.
Restricted Stock Units—Restricted stock unit (RSU) awards entitle the holder to receive one share of common stock for each unit
when the units vest. RSU's are issued to certain key employees as compensation and as incentives tied directly to the achievement of
certain performance objectives.
RSU's issued were 980,706, 1,578,000 and 1,777,700 in 2004, 2003 and 2002, respectively. Compensation expense related to
these RSUs was $24, $27 and $36 million in 2004, 2003 and 2002, respectively. There were 3,691,556, 3,103,513 and 2,342,960
RSU's outstanding, with a weighted average grant date fair value per share of $31.18, $30.10 and $37.12 at December 31, 2004, 2003
and 2002, respectively.