SunTrust 2010 Annual Report Download - page 155

SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
The following table presents information on stock options by ranges of exercise price at December 31, 2010:
(Dollars in millions, except per share data)
Options Outstanding Options Exercisable
Range of Exercise
Prices
Number
Outstanding
as of
December
31, 2010
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (Years)
Total
Aggregate
Intrinsic
Value
Number
Exercisable
as of
December
31, 2010
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (Years)
Total
Aggregate
Intrinsic
Value
$9.06 to 49.46 5,455,421 $15.91 7.80 $81 492,271 $39.24 2.49 $2
$49.47 to 64.57 3,864,272 57.44 1.69 - 3,864,272 57.44 1.69 -
$64.58 to 150.45 7,822,807 72.66 3.97 - 6,876,107 73.77 3.54 -
17,142,500 $51.17 4.68 $81 11,232,650 $66.64 2.86 $2
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the
Company’s closing stock price on the last trading day of 2010 and the exercise price, multiplied by the number of
in-the-money stock options) that would have been received by the option holders had all option holders exercised their
options on December 31, 2010. This amount changes based on the fair market value of the Company’s stock. Total intrinsic
value of options exercised for the years ended December 31, 2010, 2009 and 2008 was $0, $0, and $5 million, respectively.
Total fair value, measured as of the grant date, of restricted shares vested was $85 million, $81 million, and $12 million, for
the years ended December 31, 2010, 2009 and 2008, respectively.
As of December 31, 2010 and 2009, there was $62 million and $78 million, respectively, of unrecognized stock-based
compensation expense related to nonvested stock options and restricted stock. The unrecognized stock compensation expense
as of December 31, 2010 is expected to be recognized over a weighted average period of 1.9 years.
Stock-based compensation expense recognized in noninterest expense for the year ended December 31 was as follows:
(Dollars in millions) 2010 2009 2008
Stock-based compensation expense:
Stock options $14 $12 $12
Restricted stock 42 66 77
Total stock-based compensation expense $56 $78 $89
The recognized stock-based compensation tax benefit amounted to $21 million, $30 million and $34 million for the years
ended December 31, 2010, 2009 and 2008, respectively.
In addition to the SunTrust stock-based compensation awards, the Company has two subsidiaries which sponsor separate
equity plans where subsidiary restricted stock or restricted membership interests are granted to key employees of the
subsidiaries. These awards may be subject to one or more vesting criteria, including employment, performance or other
conditions as established by the board of directors or manager of the subsidiary at the time of grant. Compensation cost for
these restricted awards is equal to the fair market value of the shares at the date of the award and is amortized to
compensation expense over the vesting period. As the equity of these subsidiaries does not trade in public markets, fair value
at grant date is determined based on a current external valuation. Depending on the specific terms of the awards, unvested
awards may or may not be entitled to receive dividends or distributions during the vesting period. The restricted stock awards
and restricted membership interest awards are subject to certain fair value put and call provisions subsequent to vesting.
Stock-based compensation expense recognized in noninterest expense for these subsidiary equity plans for the years ended
December 31, 2010, 2009 and 2008 totaled $13 million, $1 million and $8 million, respectively. At the end of 2010, the
vesting of some of these awards caused the Company to record noncontrolling interest.
Retirement Plans
Defined Contribution Plan
SunTrust maintains a qualified defined contribution plan that offers a dollar for dollar match on the first 5% of eligible pay
that a participant, including executive participants, elects to defer to the 401(k) plan. The plan was amended and restated in
2010 to reflect regulatory and plan design changes, including the addition of a vesting requirement and designated Roth
139