Cardinal Health 2008 Annual Report Download - page 137

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(3) Equity-based compensation charged to discontinued operations was approximately $24.0 million and $22.2
million, net of tax benefits of $12.5 million and $11.9 million, during the fiscal years ended June 30, 2007
and 2006, respectively.
(4) Fiscal 2008 equity-based compensation expense includes approximately $8.7 million related to unvested equity
awards held by the former Executive Director of the Company (also referred to below as the Company’s then
Executive Chairman of the Board). The acceleration of the equity-based compensation expense resulted from a
change in status from an employee to a nonemployee director. Fiscal 2006 equity-based compensation expense
includes approximately $15.3 million related to unvested equity awards then held by the Company’s then
Executive Chairman of the Board. The acceleration of the equity-based compensation expense resulted from
his second amended and restated employment agreement, dated April 17, 2006.
The following summarizes all stock option transactions for the Company under the Plans from July 1, 2006
through June 30, 2008, giving retroactive effect to conversions of options in connection with acquisitions and
stock splits:
(in millions, except per share amounts)
Options
Outstanding
Weighted Average
Exercise Price
per Common Share
Balance at June 30, 2006 ................................... 44.8 $55.13
Granted ................................................ 4.9 65.22
Exercised ............................................... (9.9) 53.61
Canceled ............................................... (3.9) 55.70
Balance at June 30, 2007 ................................... 35.9 $56.91
Granted ................................................ 3.1 66.51
Exercised ............................................... (4.5) 44.41
Canceled ............................................... (2.4) 64.52
Balance at June 30, 2008 ................................... 32.1 $58.81
Additional information concerning stock options outstanding as of June 30, 2008, 2007 and 2006 is
presented below (options are in millions):
2008
Outstanding Exercisable
Range of Exercise
Prices per Common
Share Options
Weighted
Average
Remaining
Contractual Life
in Years
Weighted
Average
Exercise Price
per Common
Share Options
Weighted
Average
Exercise Price
per Common
Share
$ 0.01 – $44.14 2.0 2.2 $31.53 2.0 $31.53
$44.15 – $59.19 9.7 5.1 49.25 8.4 47.76
$59.20 – $64.11 5.1 5.3 61.53 4.8 61.59
$64.12 – $67.90 11.3 4.6 66.96 6.4 67.09
$67.91 – $80.86 4.0 3.5 69.04 3.6 68.94
$ 0.01 – $80.86 32.1 4.6 $58.81 25.2 $57.09
2007
Outstanding Exercisable
Range of Exercise
Prices per Common
Share Options
Weighted
Average
Remaining
Contractual Life
in Years
Weighted
Average
Exercise Price
per Common
Share Options
Weighted
Average
Exercise Price
per Common
Share
$ 0.01 – $ 44.14 3.0 2.5 $30.68 2.8 $29.68
$44.15 – $ 59.19 12.6 6.1 48.75 2.1 53.70
$59.20 – $ 64.11 5.6 6.1 61.58 5.4 61.54
$64.12 – $ 67.90 10.2 5.1 66.87 6.1 67.22
$67.91 – $ 80.86 4.5 4.4 69.06 3.9 68.92
$ 0.01 – $ 80.86 35.9 5.3 $56.91 20.3 $59.45
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