Boeing 2013 Annual Report Download - page 106

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94
Note 15 – Share-Based Compensation and Other Compensation Arrangements
Share-Based Compensation
Our 2003 Incentive Stock Plan, as amended and restated effective February 21, 2011, permits awards of
incentive stock options, non-qualified stock options, restricted stock, stock units, performance shares,
performance units and other incentives to our employees, officers, consultants and independent
contractors. The aggregate number of shares of our stock available for issuance under the amended plan
will not exceed 80,000,000 and no more than an aggregate of 16,000,000 shares are available for issuance
as restricted stock awards.
Shares issued as a result of stock option exercises or conversion of stock unit awards will be funded out
of treasury shares, except to the extent there are insufficient treasury shares, in which case new shares
will be issued. We believe we currently have adequate treasury shares to meet any requirements to issue
shares during 2014.
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 were as follows:
Years ended December 31, 2013 2012 2011
Stock options $93 $85 $88
Restricted stock units and other awards 113 108 98
Share-based plans expense $206 $193 $186
Income tax benefit $76 $75 $73
Stock Options
In February 2013, 2012 and 2011, we granted to our executives 6,591,968, 6,114,922 and 5,426,910
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 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, 2013 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 33,664,018 $71.81
Granted 6,698,861 76.35
Exercised (15,605,753) 70.31
Forfeited (926,233) 74.74
Expired (63,150) 68.30
Outstanding at end of year 23,767,743 $73.97 6.81 $1,486
Exercisable at end of year 12,552,449 $72.70 5.11 $801