PACCAR 2010 Annual Report Download - page 76

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The summary of options as of December 31, 2010, and changes during the year then ended is presented below.
remaining aggregate
number exercise contractual intrinsic
of shares price* life in years* value
Options outstanding at January 1 5,567,700 $ 29.12
Granted 975,500 36.12
Exercised (1,118,000) 19.72
Cancelled (142,900) 37.50
Options outstanding at December 31 5,282,300 $ 32.18 6.01 $ 132.9
Vested and expected to vest at December 31 5,091,300 $ 32.11 5.91 $ 128.4
Exercisable at December 31 2,686,100 $ 28.47 3.84 $ 77.5
*Weighted Average
The fair value of restricted shares is determined based upon the stock price on the date of grant. The summary of
nonvested restricted shares as of December 31, 2010 and changes during the year then ended is presented below:
number grant date
nonvested shares of shares fair value*
Nonvested awards outstanding at January 1 182,900 $ 39.25
Granted 24,600 36.61
Vested (62,000) 40.69
Forfeited (2,900) 35.22
Nonvested awards outstanding at December 31 142,600 $ 38.25
*Weighted Average
As of December 31, 2010, there was $9.7 million of total unrecognized compensation cost related to nonvested
stock options, which is recognized over a remaining weighted average vesting period of 1.45 years. Unrecognized
compensation cost related to nonvested restricted stock awards of $.8 million is expected to be recognized over a
remaining weighted average vesting period of 1.1 years.
A total of 187,500 performance based restricted stock awards were granted in 2008 and 2007 at a weighted-average
fair value of $43.61. These awards vest after five years if the Company’s earnings per share growth over the same
five year period meet or exceed certain performance goals. No matching shares were granted under this program in
2010 or 2009.
The fair value of the performance based restricted stock awards were determined based on the stock price on the
grant date. Compensation expense for awards with performance conditions is recorded only when it is probable
that the requirements will be achieved. As of December 31, 2010, 2009 and 2008, the attainment of the conditions
of the awards was not considered probable.
N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
December 31, 2010, 2009 and 2008 (currencies in millions except per share amounts)
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