Huntington National Bank 2012 Annual Report Download - page 165

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The following table illustrates the weighted average assumptions used in the option-pricing model for options granted in the three
years ended December 31, 2012, 2011, and 2010:
2012 2011 2010
Assumptions
Risk-free interest rate 1.10 %1.95 % 2.30 %
Expected dividend yield 2.38 2.63 0.68
Expected volatility of Huntington's common stock 34.9 30.0 38.5
Expected option term (years) 6.0 6.0 6.0
Weighted-average grant date fair value per share $1.78 $ 1.40 $ 2.20
The following table illustrates total share-based compensation expense and related tax benefit for the three years ended December
31, 2012, 2011, and 2010:
(dollar amounts in thousands) 2012 2011 2010
Share-based compensation expense $ 27,873 $ 19,666 $ 15,453
Tax benefit 9,298 6,708 5,408
Huntington’s stock option activity and related information for the year ended December 31, 2012, was as follows:
Weighted-
Weighted- Average
Average Remaining Aggregate
Exercise Contractual Intrinsic
(amounts in thousands, except years and per share amounts) Options Price Life (Years) Value
Outstanding at January 1, 2012 27,205 $ 11.47
Granted 5,920 6.71
Exercised (520) 4.33
Forfeited/expired (5,837) 19.21
Outstanding at December 31, 2012 26,768 $ 8.87 4.5 $ 9,449
Vested and expected to vest at December 31, 2012 (1) 12,322 $ 6.26 5.8 $ 3,388
Exercisable at December 31, 2012 13,037 $ 11.61 3.1 $ 5,749
(1) The number of options expected to vest includes an estimate of expected forfeitures.
The aggregate intrinsic value represents the amount by which the fair value of underlying stock exceeds the “in-the-money”
option exercise price. For the years ended December 31, 2012, 2011, and 2010, cash received for the exercises of stock options was
$2.3 million, $0.5 million and $0.2 million, respectively. The tax benefit realized for the tax deductions from option exercises totaled
$0.3 million, $0.1 million and less than $0.1 million in 2012, 2011, and 2010, respectively.
Huntington also grants restricted stock, restricted stock units, performance share awards and other stock-based awards. Restricted
stock units and awards are issued at no cost to the recipient, and can be settled only in shares at the end of the vesting period.
Restricted stock awards provide the holder with full voting rights and cash dividends during the vesting period. Restricted stock units
do not provide the holder with voting rights or cash dividends during the vesting period, but do accrue a dividend equivalent that is
paid upon vesting, and are subject to certain service restrictions. Performance share awards are payable contingent upon Huntington
achieving certain predefined performance objectives over the three-year measurement period. The fair value of these awards is the
closing market price of Huntington’s common stock on the date of award.