Medtronic 2009 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2009 Medtronic 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 106

  • 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
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

82 Medtronic, Inc.
Notes to Consolidated Financial Statements
(continued)
Stock Options The following table summarizes all stock option activity, including activity from options assumed or issued as a result of
acquisitions, during fiscal years 2009, 2008 and 2007:
Fiscal Year
2009 2008 2007
Options
(in thousands)
Wtd. Avg.
Exercise Price
Options
(in thousands)
Wtd. Avg.
Exercise Price
Options
(in thousands)
Wtd. Avg.
Exercise Price
Beginning balance 92,444 $47.21 90,906 $46.99 88,838 $46.23
Granted 12,447 37.25 9,436 48.13 10,529 48.64
Assumed from Kyphon acquisition ——3,486 27.73 — —
Exercised (8,046) 39.01 (9,111) 37.80 (6,089) 37.37
Canceled (3,451) 47.59 (2,273) 50.18 (2,372) 50.22
Outstanding at year-end 93,394 $46.57 92,444 $47.21 90,906 $46.99
Exercisable at year-end 67,795 $47.78 67,741 $46.80 67,017 $45.47
For options outstanding and exercisable at April 24, 2009, the weighted average remaining contractual life was 5.41 years and 4.20
years, respectively. The total intrinsic value, calculated as the closing stock price at year-end less the option exercise price, of options
exercised during fiscal years 2009, 2008 and 2007 was $105 million, $138 million and $88 million, respectively. For options outstanding
and exercisable at April 24, 2009, the total intrinsic value of in-the-money options was $7 million and $6 million, respectively. The
Company issues new shares when stock option awards are exercised. Cash received from the exercise of stock options for the fiscal year
ended April 24, 2009 was $305 million. The Company’s tax deductions related to the exercise of stock options for fiscal year 2009 were
$33 million. Unrecognized compensation expense related to outstanding stock options as of April 24, 2009 was $200 million and is
expected to be recognized over a weighted average period of 2.5 years and will be adjusted for any future changes in estimated
forfeitures.
Restricted Stock Awards The following table summarizes restricted stock award activity during fiscal years 2009, 2008 and 2007:
Fiscal Year
2009 2008 2007
Awards
(in thousands)
Wtd. Avg.
Grant Price
Awards
(in thousands)
Wtd. Avg.
Grant Price
Awards
(in thousands)
Wtd. Avg.
Grant Price
Nonvested, beginning balance 5,789 $49.24 3,982 $50.16 2,008 $51.64
Granted 3,520 36.47 2,204 47.74 2,192 48.19
Assumed from Kyphon acquisition ——402 46.88 — —
Vested (564) 47.42 (492) 47.60 (112) 47.57
Forfeited (399) 51.17 (307) 49.88 (106) 51.16
Nonvested at year-end 8,346 $43.88 5,789 $49.24 3,982 $50.16
Unrecognized compensation expense related to restricted stock awards as of April 24, 2009 was $173 million and is expected to be
recognized over a weighted average period of 2.8 years and will be adjusted for any future changes in estimated forfeitures.