E-Z-GO 2007 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2007 E-Z-GO annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

Textron Inc.
Stock option activity under the Plan is summarized as follows:
2007 2006 2005
Weighted- Weighted- Weighted-
Average Average Average
Number of Exercise Number of Exercise Number of Exercise
(Shares in thousands) Options Price Options Price Options Price
Outstanding at beginning of year 10,840 $ 31.88 16,292 $ 28.12 18,522 $ 26.03
Granted 1,860 45.87 2,000 43.98 2,416 38.34
Exercised (3,410) 29.93 (6,638) 26.17 (4,302) 24.31
Canceled, expired or forfeited (266) 36.26 (814) 32.77 (344) 35.05
Outstanding at end of year 9,024 $ 35.37 10,840 $ 31.88 16,292 $ 28.12
Exercisable at end of year 5,395 $ 29.63 6,946 $ 27.82 12,412 $ 26.12
At December 29, 2007, our outstanding options had an aggregate intrinsic value of $316 million and a weighted-average remaining contractual
life of 6.3 years. Our exercisable options had an aggregate intrinsic value of $220 million and a weighted-average remaining contractual life of
4.8 years at December 29, 2007.
Restricted Stock Units
The fair value of a restricted stock unit paid in stock is based on the trading price of our common stock on the date of grant, less required
adjustments to refl ect the fair value of the award as dividends are not paid or accrued until the restricted stock unit vests. The weighted-average
grant date fair value of restricted stock units paid in stock that were granted in 2007, 2006 and 2005 was approximately $45, $41 and $36 per
share, respectively.
Activity for restricted stock units paid in stock is as follows:
Weighted-
Average
Number of Grant Date
(Shares in thousands) Shares Fair Value
Outstanding at beginning of year, nonvested 2,437 $ 32.69
Granted 718 44.56
Vested (409) 25.23
Forfeited (240) 31.74
Outstanding at end of year, nonvested 2,506 $ 37.40
Share-Based Compensation Awards
The value of the share-based compensation awards that vested and/or were paid during the respective periods is as follows:
(In millions) 2007 2006 2005
Subject only to service conditions:
Value of shares, options or units vested $ 38 $ 32 $ 21
Intrinsic value of cash awards paid 10 13 9
Subject to performance vesting conditions:
Value of units vested 46 42 37
Intrinsic value of cash awards paid 42 37 25
Intrinsic value of amounts paid under DIP 4 1 18
As of December 29, 2007, we had not recognized $61 million of total compensation cost associated with unvested awards subject only to service
conditions. As of December 29, 2007, we had not recognized $35 million of total compensation cost associated with unvested share-based
compensation awards subject to performance vesting conditions. We expect to recognize compensation expense for each of these types of awards
over a weighted-average period of approximately two years.
The fair value of share-based compensation awards accounted for as liabilities includes performance share units, retention awards, restricted
stock units payable in cash and DIP stock unit awards. The fair value of these awards is based on the trading price of our common stock, less
adjustments to refl ect the fair value of the award as dividends are not paid or accrued until vested, and is remeasured at each reporting period date.
61