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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
The following table provides information related to stock option activity for 2010, 2009 and 2008:
Number of
Shares
Underlying
Options
Weighted
Average
Exercise Price
Per Share
Weighted
Average
Contract
Life in Years
Aggregate
Intrinsic
Value(a)
(in thousands) ($ in millions)
Outstanding at January 1, 2010 ......... 2,283 $ 8.36
Exercised ....................... (475) 6.29 $ 8
Forfeited / Canceled ............... — —
Outstanding and exercisable at
December 31, 2010 ................. 1,808 $ 8.90 2.03 $ 31
Shares authorized for future grants ...... —
Outstanding at January 1, 2009 ......... 2,802 $ 8.13
Exercised ....................... (508) 7.12 $ 8
Forfeited / Canceled ............... (11) 6.47
Outstanding and exercisable at
December 31, 2009 ................. 2,283 $ 8.36 2.75 $ 40
Shares authorized for future grants ...... —
Outstanding at January 1, 2008 ......... 4,445 $ 7.55
Exercised ....................... (1,639) 6.54 $ 66
Forfeited / Canceled ............... (4) 15.26
Outstanding and exercisable at
December 31, 2008 ................. 2,802 $ 8.13 3.59 $ 23
Shares authorized for future grants ...... 5,763
(a) The intrinsic value of a stock option is the amount by which the current market value or the market value
upon exercise of the underlying stock exceeds the exercise price of the option.
As of December 31, 2010, there was no remaining unrecognized compensation cost related to unvested
stock options.
During the years ended December 31, 2010, 2009 and 2008, we recognized excess tax benefits related to
stock options of $2 million, $1 million and $15 million, respectively, which were recorded as adjustments to
additional paid-in capital and deferred income taxes with respect to such benefits.
The following table summarizes information about stock options outstanding and exercisable at
December 31, 2010:
Range of
Exercise Prices
Number
of Options
Weighted-Avg.
Remaining
Contractual Life
in Years
Weighted-Avg.
Exercise Price
(in thousands)
$ 5.20 – $ 5.20 226 1.56 $ 5.20
5.35 – 5.85 32 1.26 5.47
6.11 – 6.11 358 0.82 6.11
6.40 – 7.74 64 1.25 6.87
7.80 – 7.80 325 2.02 7.80
7.86 – 10.01 111 1.82 8.58
10.08 – 10.08 357 2.48 10.08
10.10 – 15.06 197 3.05 12.82
15.47 – 16.08 88 3.90 15.73
22.49 – 22.49 50 4.25 22.49
$ 5.20 – $ 22.49 1,808 2.03 $ 8.90
102