Boeing 2011 Annual Report Download - page 105

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Share-based plans expense is primarily included in General and administrative expense since it is
incentive compensation issued primarily to our executives. The share-based plans expense and
related income tax benefit follow:
Years ended December 31, 2011 2010 2009
Stock options $ 88 $ 96 $111
Restricted stock units and other awards 98 83 56
ShareValue Trust 36 71
Share-based plans expense $186 $215 $238
Income tax benefit $ 73 $ 83 $ 89
Stock Options
In February 2011, 2010 and 2009, we granted to our executives 5,426,910, 5,932,806 and 7,423,242
options, respectively. The options have been granted with an exercise price equal to the fair market
value of our stock on the date of grant and expire ten years after the date of grant. The stock options
granted after 2005 vest over a period of three years, with 34% vesting after the first year, 33% vesting
after the second year and the remaining 33% vesting after the third year. If an executive terminates
employment for any reason, the non-vested portion of the stock option will not vest and all rights to the
non-vested portion will terminate completely.
Stock option activity for the year ended December 31, 2011 is as follows:
Shares
Weighted
Average
Exercise
Price Per
Share
Weighted
Average
Remaining
Contractual
Life (Years)
Aggregate
Intrinsic
Value
Number of shares under option:
Outstanding at beginning of year 28,975,442 $65.96
Granted 5,658,705 71.29
Exercised (2,447,099) 46.88
Forfeited (665,482) 61.11
Expired (90,171) 61.88
Outstanding at end of year 31,431,395 $68.52 6.58 $290
Exercisable at end of year 20,488,535 $71.77 5.51 $170
The total intrinsic value of options exercised was $67, $59 and $2 during the years ended
December 31, 2011, 2010 and 2009, respectively. Cash received from options exercised for the years
ended December 31, 2011, 2010 and 2009 was $114, $87 and $10 with a related tax benefit of $23,
$20 and $1, respectively, derived from the compensation deductions resulting from these option
exercises. At December 31, 2011, there was $89 of total unrecognized compensation cost related to
the Stock Option plan which is expected to be recognized over a weighted average period of 1.8 years.
The grant date fair value of stock options vested during the years ended December 31, 2011, 2010 and
2009 was $92, $103 and $114, respectively.
93