PACCAR 2011 Annual Report Download - page 79

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The summary of options as of December 31, 2011, 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 5,282,300 $ 32.18
Granted 660,200 50.50
Exercised (536,100) 20.26
Cancelled (431,000) 36.40
Options outstanding at December 31 4,975,400 $ 35.53 5.71 $ 25.4
Vested and expected to vest 4,865,800 $ 35.32 5.64 $ 25.3
Exercisable 2,704,600 $ 33.65 3.81 $ 18.3
*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, 2011 and changes during the year then ended is presented below:
NUMBER GRANT DATE
NONVESTED SHARES OF SHARES FAIR VALUE*
Nonvested awards outstanding at January 1 142,600 $ 38.25
Granted 117,200 51.38
Vested (105,900) 44.40
Nonvested awards outstanding at December 31 153,900 $ 43.72
*Weighted Average
As of December 31, 2011, there was $9.0 of total unrecognized compensation cost related to nonvested stock
options, which is recognized over a remaining weighted average vesting period of 1.44 years. Unrecognized
compensation cost related to nonvested restricted stock awards of $.7 is expected to be recognized over a remaining
weighted average vesting period of .8 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
2011, 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, 2011, 2010 and 2009, the attainment of the conditions
of the awards was not considered probable.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2011, 2010 and 2009 (currencies in millions, except per share data)
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