Johnson and Johnson 2011 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2011 Johnson and Johnson 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.

Page out of 76

  • 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 55
A summary of option activity under the Plan as of January 1, 2012,
January 2, 2011 and January 3, 2010 and changes during the years
ending on those dates is presented below:
Weighted Aggregate
Outstanding Average Intrinsic Value
(Shares in Thousands) Shares Exercise Price (Dollars in Millions)
Shares at December 28, 2008 215,499 $58.14 $ 597
Options granted 21,576 58.32
Options exercised (18,225) 50.97
Options canceled/forfeited (6,131) 61.85
Shares at January 3, 2010 212,719 58.66 1,310
Options granted 13,996 62.62
Options exercised (25,020) 51.84
Options canceled/forfeited (8,005) 62.36
Shares at January 2, 2011 193,690 59.68 648
Options granted 9,530 62.21
Options exercised (20,160) 56.65
Options canceled/forfeited (3,601) 62.38
Shares at January 1, 2012 179,459 $60.10 $1,004
The total intrinsic value of options exercised was $167 million,
$278 million and $184 million in 2011, 2010 and 2009, respectively.
The following table summarizes stock options outstanding and
exercisable at January 1, 2012:
(Shares in Thousands) Outstanding Exercisable
Average Average
Exercise Average Exercise Exercise
Price Range Options Life(1) Price Options Price
$27.57-$49.86 93 1.4 $46.53 93 $46.53
$50.52-$52.80 17,586 1.1 52.20 17,567 52.20
$53.00-$57.30 35,004 1.3 55.19 35,004 55.19
$57.44-$58.34 36,660 5.5 58.33 18,389 58.34
$58.42-$65.10 39,951 7.3 62.14 16,943 61.77
$65.62-$68.37 50,165 3.8 65.97 50,130 65.97
179,459 4.2 $60.10 138,126 $59.94
(1) Average contractual life remaining in years.
Stock options exercisable at January 2, 2011 and January 3, 2010
were 141,275 at an average price of $59.25 and an average life of
4.7 years and 148,349 at an average price of $57.26 and an average
life of 5.0 years, respectively.
RESTRICTED SHARE UNITS
The Company grants restricted share units with a vesting period of
three years. The Company settles employee stock issuances with
treasury shares. Treasury shares are replenished throughout the
year for the number of shares used for employee stock issuances.
A summary of share activity under the Plan as of January 1, 2012:
Outstanding
(Shares in Thousands) Shares
Shares at December 28, 2008 22,258
Granted 11,172
Issued (5,714)
Canceled/forfeited (1,392)
Shares at January 3, 2010 26,324
Granted 12,003
Issued (6,297)
Canceled/forfeited (2,296)
Shares at January 2, 2011 29,734
Granted 11,478
Issued (8,300)
Canceled/forfeited (1,886)
Shares at January 1, 2012 31,026
The average fair value of the restricted share units granted was
$55.90, $56.69 and $52.79 in 2011, 2010 and 2009, respectively,
using the fair market value at the date of grant. The fair value of
restricted share units was discounted for dividends, which are
not paid on the restricted share units during the vesting period.
The fair value of restricted share units settled was $458.9 million,
$375.0 million and $308.4 million in 2011, 2010 and 2009,
respectively.