US Bank 2009 Annual Report Download - page 107

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To satisfy option exercises, the Company predominantly uses treasury stock.
Additional information regarding stock options outstanding as of December 31, 2009, is as follows:
Range of Exercise Prices Shares
Weighted-
Average
Remaining
Contractual
Life (Years)
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price
Outstanding Options Exercisable Options
$11.02 – $15.00 . . . . . . . . . . . . . . . . . . . . . 13,262,305 9.1 $11.43 101,705 $13.03
$15.01 – $20.00 . . . . . . . . . . . . . . . . . . . . . 5,375,452 2.2 18.85 5,076,400 18.92
$20.01 – $25.00 . . . . . . . . . . . . . . . . . . . . . 13,761,424 2.1 22.17 13,689,375 22.17
$25.01 – $30.00 . . . . . . . . . . . . . . . . . . . . . 15,076,581 5.4 29.25 12,214,557 29.30
$30.01 – $35.00 . . . . . . . . . . . . . . . . . . . . . 30,427,502 7.2 31.71 14,123,044 31.14
$35.01 – $37.99 . . . . . . . . . . . . . . . . . . . . . 10,476,205 7.0 36.06 5,332,967 36.05
88,379,469 6.1 $26.49 50,538,048 $27.52
Restricted Stock and Unit Awards
A summary of the status of the Company’s restricted shares of stock is presented below:
Year Ended December 31 Shares
Weighted-
Average Grant-
Date Fair Value Shares
Weighted-
Average Grant-
Date Fair Value Shares
Weighted-
Average Grant-
Date Fair Value
2009 2008 2007
Nonvested Shares
Outstanding at beginning of period. . . . . 2,420,535 $32.42 2,368,085 $31.45 2,919,901 $27.32
Granted . . . . . . . . . . . . . . . . . . . . . 5,435,363 12.09 1,132,239 32.24 952,878 35.69
Vested . . . . . . . . . . . . . . . . . . . . . . (869,898) 31.84 (958,729) 29.78 (1,292,748) 25.31
Cancelled. . . . . . . . . . . . . . . . . . . . (197,797) 16.52 (121,060) 32.69 (211,946) 31.05
Outstanding at end of period. . . . . . . . . 6,788,203 (a) $16.68 2,420,535 $32.42 2,368,085 $31.45
(a) Includes maximum number of shares to be received by participants under awards that are based on the achievement of certain future performance criteria by the Company.
The total fair value of shares vested was $12 million,
$29 million, and $45 million for 2009, 2008 and 2007,
respectively.
Stock-based compensation expense was $89 million,
$85 million and $77 million for 2009, 2008 and 2007,
respectively. On an after-tax basis, stock-based compensation
was $55 million, $53 million and $48 million for 2009,
2008, and 2007, respectively. As of December 31, 2009,
there was $159 million of total unrecognized compensation
cost related to nonvested share-based arrangements granted
under the plans. That cost is expected to be recognized over
a weighted-average period of 2.4 years as compensation
expense.
Note 19 Income Taxes
The components of income tax expense were:
(Dollars in Millions) 2009 2008 2007
Federal
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 765 $1,832 $1,732
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (499) (958) (95)
Federal income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 874 1,637
State
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 300 248
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46) (87) (2)
State income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 213 246
Total income tax provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 395 $1,087 $1,883
U.S. BANCORP 105