SunTrust 2015 Annual Report Download - page 143

Notes to Consolidated Financial Statements, continued
115
The Company used the projected dividend to be paid as the
dividend yield assumption. The expected stock price volatility
represented the implied volatility of SunTrust stock. The risk-
free interest rate was derived from the U.S. Treasury yield curve
in effect at the time of grant based on the expected life of the
option. The expected life of options represented the period of
time that the stock options were expected to be outstanding and
was derived from historical data that was used to evaluate
patterns such as stock option exercise and employee termination.
Stock options were granted at an exercise price that was no
less than the fair market value of a share of SunTrust common
stock on the grant date and were either tax-qualified incentive
stock options or non-qualified stock options. Stock options
typically vest pro-rata over three years and generally have a
maximum contractual life of ten years. Upon exercise, shares are
generally issued from treasury stock. The weighted average fair
value of options granted during year ended December 31, 2013
was $7.37 per share.
The following table presents a summary of stock options, restricted stock, and RSU activity for the years ended December 31:
Stock Options Restricted Stock Restricted Stock Units
(Dollars in millions, except per
share data) Shares
Price
Range
Weighted
Average
Exercise
Price Shares
Deferred
Compensation
Weighted
Average
Grant
Price Shares
Weighted
Average
Grant
Price
Balance, January 1, 2013 13,311,652 $9.06 - 150.45 $50.15 3,686,321 $48 $25.56 1,930,646 $25.16
Granted 552,998 27.41 27.41 1,314,277 39 29.58 593,093 24.65
Exercised/vested (712,981) 9.06 - 27.79 16.94 (821,636) — 25.95 (41,790) 28.73
Cancelled/expired/forfeited (2,222,298) 21.67 - 118.18 56.55 (195,424) (5) 27.41 14,229 20.54
Amortization of restricted
stock compensation — — — — (32) — — —
Balance, December 31, 2013 10,929,371 9.06 - 150.45 49.86 3,983,538 50 27.04 2,496,178 26.69
Granted — — — 21,427 — 39.20 1,590,075 36.67
Exercised/vested (426,889) 9.06 - 32.27 20.86 (957,308) — 29.31 (338,196) 32.80
Cancelled/expired/forfeited (2,774,725) 23.70 - 149.81 71.10 (117,798) (2) 25.60 (58,793) 37.73
Amortization of restricted
stock compensation — — — — (27) — — —
Balance, December 31, 2014 7,727,757 9.06 - 150.45 43.84 2,929,859 21 26.45 3,689,264 31.15
Granted — — — 20,412 1 41.15 1,670,587 40.54
Exercised/vested (687,832) 9.06 - 32.27 20.38 (1,510,045) — 22.86 (883,621) 26.39
Cancelled/expired/forfeited (1,821,667) 23.70 - 150.45 73.01 (106,151) (4) 29.95 (157,390) 39.19
Amortization of restricted
stock compensation — — — — (16) — — —
Balance, December 31, 2015 5,218,258 $9.06 - 85.34 $36.75 1,334,075 $2 $30.44 4,318,840 $35.44
Exercisable,
December 31, 2015 5,033,948 $37.09
The following table presents stock option information at December 31, 2015:
Options Outstanding Options Exercisable
(Dollars in millions,
except per share
data)
Number
Outstanding
at
December 31,
2015
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (Years)
Total
Aggregate
Intrinsic
Value
Number
Exercisable
at
December 31,
2015
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (Years)
Total
Aggregate
Intrinsic
Value
Range of Exercise Prices:
$9.06 to 49.46 3,482,672 $19.47 4.2 $81 3,298,362 $19.03 4.1 $79
$49.47 to 64.57 781 56.34 1.8 — 781 56.34 1.8 —
$64.58 to 85.34 1,734,805 71.42 1.2 — 1,734,805 71.42 1.2 —
5,218,258 $36.75 3.2 $81 5,033,948 $37.09 3.1 $79