Cardinal Health 2011 Annual Report Download - page 99

S
toc
k
O
p
tions
T
he following summarizes all stock option transactions under the Plans from June 30, 2009 through
J
une
30, 2011
:
(
in millions, except per share amounts
)
S
tock Options
Outstandin
g
(1)
W
e
i
ghted
A
verage
Ex
e
r
c
i
se
Pri
ce
per Common
Share (2
)
W
e
i
ghted
Averag
e
R
emaining
C
ontractual
L
ife
in Years
Aggregate
Intrinsic
V
alu
e
B
alance at June 30, 200
9
...........................
2
9.4 $59.25 3.9 $ 1.8
Grante
d
......................................... 7.
2
2
8.0
9
Exerc
i
se
d
.......................................
(1
.
4) 2
7.
04
C
anceled and forfeite
d
.............................
(
11.1) 62.4
6
B
a
l
ance at June 30, 201
0
...........................
2
4.1 $37.88 3.9 $ 56.9
G
rante
d
.........................................
4
.
1
31
.
0
7
Ex
e
r
c
i
sed
.......................................
(2.
6
) 30.1
6
C
anceled and forfeite
d
............................. (2.
5
) 43.34
B
alance at June 30, 2011
...........................
2
3.1 $37.02 3.6 $217.
0
Exercisable at June 30, 201
1
........................
1
5.2 $40.73 2.6 $ 93.8
(1) The stock options granted, canceled and forfeited activity for fiscal 2010 included the impact of our stock
opt
i
on exc
h
ange program an
d
t
h
ea
dj
ustments to outstan
di
ng stoc
k
opt
i
ons
i
n connect
i
on w
i
t
h
t
h
eSp
i
n-O
ff,
as discussed below.
(2) Exercise prices related to stock options have been adjusted in connection with the Spin-Off for dates after
A
ugust 31, 2009, t
h
ee
ff
ect
i
ve
d
ate o
f
t
h
ea
dj
ustments.
T
he following table provides data related to all stock option activity for fiscal 2011, 2010 and 2009
:
(
in millions, except per share data and years
)
2011
2010
2009
We
igh
te
d
-avera
g
e
g
rant
d
ate
f
a
i
rva
l
ue per stoc
k
opt
i
on (1
)
.
....................
$
6
.40
$
6.44
$
13.67
Aggregate
i
ntr
i
ns
i
cva
l
ue o
f
exerc
i
se
d
opt
i
ons
.
..............................
.
2
5
.
8
7.
3
14.
0
C
ash received u
p
on exercis
e
.
............................................
.
6
3.0 40.0 39.2
C
ash tax disbursements realized related to exercise
............................
(13.7) (16.1) (2.9)
T
otal com
p
ensation cost, net of estimated forfeitures, related to unvested stoc
k
o
pt
i
ons not yet recogn
i
ze
d
, pre-tax
.......................................
2
8
.7
3
2.
05
4.
3
We
i
g
h
te
d
-average per
i
o
di
n years over w
hi
c
h
stoc
k
opt
i
on compensat
i
on cost
is
e
xpected to be reco
g
nized
.
............................................. 1.7 1.9 1.
4
(1) T
h
ewe
i
g
h
te
d
-average grant
d
ate
f
a
i
rva
l
ue per stoc
k
opt
i
on
d
oes not
i
nc
l
u
d
et
h
e
i
mpact o
f
our stoc
k
opt
i
o
n
e
xc
h
ange program
.
Th
e
f
a
i
rva
l
ues o
f
t
h
e stoc
k
opt
i
ons grante
d
to our emp
l
oyees an
ddi
rectors
d
ur
i
ng
fi
sca
l
2011, 2010 an
d
2009 were est
i
mate
d
on t
h
e
d
ate o
f
grant us
i
ng a
l
att
i
ce va
l
uat
i
on mo
d
e
l
.We
b
e
li
eve t
h
e
l
att
i
ce mo
d
e
l
prov
id
e
s
f
or better estimates because it has the abilit
y
to take into account emplo
y
ee exercise patterns based on chan
g
es i
n
o
ur stoc
k
pr
i
ce an
d
ot
h
er var
i
a
bl
es an
di
t prov
id
es
f
or a range o
fi
nput assumpt
i
ons, w
hi
c
h
are
di
sc
l
ose
di
nt
h
e
ta
bl
e
b
e
l
ow. T
h
er
i
s
k
-
f
ree rate
i
s
b
ase
d
on t
h
eUn
i
te
d
States Treasury y
i
e
ld
curve at t
h
et
i
me o
f
t
h
e grant. W
e
a
nal
y
zed historical data to estimate option exercise behaviors and emplo
y
ee terminations to be used within th
e
l
att
i
ce mo
d
e
l
. Dur
i
ng
fi
sca
l
2011 an
d
2010, we ca
l
cu
l
ate
d
separate opt
i
on va
l
uat
i
ons
f
or two groups o
f
emp
l
oyees. Dur
i
ng
fi
sca
l
2009, we ca
l
cu
l
ate
d
separate opt
i
on va
l
uat
i
ons
f
or t
h
ree groups o
f
emp
l
oyees. T
h
e
g
roups were determined usin
g
similar historical exercise behaviors. The expected life of the options
g
ranted wa
s
ca
l
cu
l
ate
df
rom t
h
e opt
i
on va
l
uat
i
on mo
d
e
l
an
d
represents t
h
e
l
engt
h
o
f
t
i
me
i
n years t
h
at t
h
e opt
i
ons grante
d
ar
e
expecte
d
to
b
e outstan
di
ng. T
h
e range o
f
expecte
dli
ves
i
nt
h
eta
bl
e
b
e
l
ow resu
l
ts
f
rom t
h
e separate groups o
f
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