Macy's 2008 Annual Report Download - page 91

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Stock option activity for 2008 is as follows:
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life
Aggregate
Intrinsic
Value
(thousands) (years) (millions)
Outstanding, beginning of period .......................... 37,081.7 $29.73
Granted .............................................. 5,750.0 24.86
Canceled or forfeited .................................... (3,741.7) 34.32
Exercised ............................................. (295.6) 19.86
Outstanding, end of period ............................... 38,794.4 $28.64
Exercisable, end of period ................................ 25,810.2 $26.01 4.0 $(440)
Options expected to vest ................................. 11,438.9 $33.87 8.2 $(285)
The total intrinsic value of options exercised was $1 million, $145 million and $168 million in 2008, 2007
and 2006, respectively. The total grant-date fair value of stock options that vested during 2008, 2007 and 2006
was $65 million, $54 million and $57 million, respectively. Cash received from stock option exercises under the
Company’s equity plan amounted to approximately $6 million for 2008, $204 million for 2007 and $319 million
for 2006. Tax benefits realized from exercised stock options and vested restricted stock amounted to less than $1
million for 2008, $51 million for 2007 and $62 million for 2006.
Restricted stock award activity for 2008 is as follows:
Shares
Weighted
Average
Grant Date
Fair Value
Nonvested, beginning of period ..................................... 338,500 $38.16
Granted ....................................................... 144,864 24.85
Forfeited ....................................................... – –
Vested ........................................................ (500) 25.25
Nonvested, end of period .......................................... 482,864 $34.18
During 2008, 144,864 shares of Common Stock were granted in the form of restricted stock at a per share
market value of $24.85, vesting ratably each year over the next three years. During 2007, 82,000 shares of
Common Stock were granted in the form of restricted stock at per share market values of $40.23 to $46.51, fully
vesting after either three or four years. During 2006, 286,000 shares of Common Stock were granted in the form
of restricted stock at per share market values of $35.82 to $36.44, fully vesting after three years. Compensation
expense is recorded for all restricted stock grants based on the amortization of the fair market value at the time of
grant of the restricted stock over the period the restrictions lapse. There have been no grants of restricted stock
units or stock appreciation rights under the equity plans.
As of January 31, 2009, 20.9 million shares of common stock were available for additional grants pursuant
to the Company’s equity plans, of which 3.6 million shares were available for grant in the form of restricted
stock or restricted stock units. Common stock is delivered out of treasury stock upon the exercise of stock
options and grant of restricted stock.
F-43