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Table of Contents E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
Stock option awards as of December 31, 2011, and changes during the year then ended were as follows:
Number of
Shares
(in thousands)
Weighted
Average
Exercise Price
(per share)
Weighted
Average
Remaining
Contractual
Term (years)
Aggregate
Intrinsic
Value
(in thousands)
Outstanding, December 31, 2010 62,887 $ 38.83
Granted 3,739 $ 51.85
Exercised (20,677) $ 41.85
Forfeited (88) $ 35.14
Cancelled (815) $ 46.29
Outstanding, December 31, 2011145,046 $ 38.40 2.68 $ 381,386
Exercisable, December 31, 2011 32,020 $ 39.88 1.75 $ 214,349
1. Includes 5.4 million options outstanding from the 2002 Corporate Sharing Program grants of 200 shares to all eligible employees at an option price of $44.50 . These options expired in
January 2012.
The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the company's closing stock price on the
last trading day of 2011 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all
option holders exercised their in-the-money options at year end. The amount changes based on the fair market value of the company's stock. Total intrinsic
value of options exercised for 2011, 2010 and 2009 were $216 , $109 and $0 , respectively. In 2011, the company realized a tax benefit of $67 from options
exercised.
As of December 31, 2011, $16 of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period
of 1.74 years.
RSUs and PSUs
The company issues RSUs that serially vest over a three-year period and, upon vesting, convert one-for-one to DuPont common stock. A retirement eligible
employee retains any granted awards upon retirement provided the employee has rendered at least six months of service following the grant date. Additional
RSUs are also granted periodically to key senior management employees. These RSUs generally vest over periods ranging from two to five years. The fair
value of all stock-settled RSUs is based upon the market price of the underlying common stock as of the grant date.
The company also grants PSUs to senior leadership. In 2011, there were 215,531 PSUs granted. Vesting for PSUs granted in 2009, 2010 and 2011 is equally
based upon corporate revenue growth relative to peer companies and total shareholder return (TSR) relative to peer companies. Performance and payouts are
determined independently for each metric. The actual award, delivered as DuPont common stock, can range from zero percent to 200 percent of the original
grant. The grant-date fair value of the PSUs granted in 2011, subject to the TSR metric, was $72.25, estimated using a Monte Carlo simulation. The grant-date
fair value of the PSUs, subject to the revenue metric, was based upon the market price of the underlying common stock as of the grant date.
Non-vested awards of RSUs and PSUs as of December 31, 2011 and 2010 are shown below. The weighted-average grant-date fair value of RSUs and PSUs
granted during 2011 , 2010 and 2009 was $53.19 , $34.60 and $23.72 , respectively.
Number of
Shares
(in thousands)
Weighted
Average
Grant Date
Fair Value
(per share)
Nonvested, December 31, 2010 4,118 $ 32.27
Granted 1,545 $ 53.19
Vested (1,998) $ 36.92
Forfeited (84) $ 37.53
Nonvested, December 31, 2011 3,581 $ 38.58
As of December 31, 2011 , there was $38 unrecognized stock-based compensation expense related to nonvested awards. That cost
F-35