E-Z-GO 2008 Annual Report Download - page 89

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Notes to the Consolidated Financial Statements
76
Stock option activity under the Plan is summarized as follows:
2008 2007 2006
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 9,024 $ 35.37 10,840 $ 31.88 16,292 $ 28.12
Granted 1,692 53.46 1,860 45.87 2,000 43.98
Exercised (1,147) 34.26 (3,410) 29.93 (6,638) 26.17
Canceled, expired or forfeited (548) 41.86 (266) 36.26 (814) 32.77
Outstanding at end of year 9,021 $ 38.51 9,024 $ 35.37 10,840 $ 31.88
Exercisable at end of year 5,774 $ 32.45 5,395 $ 29.63 6,946 $ 27.82
At January 3, 2009, our outstanding options had no significant aggregate intrinsic value and a weighted-average remaining contractual life of 6.3
years. Our exercisable options had no significant aggregate intrinsic value and a weighted-average remaining contractual life of 5.1 years at
January 3, 2009.
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 for certain awards, to reflect the fair value of the award as dividends are not paid or accrued until those restricted stock unit vests. The
weighted-average grant date fair value of restricted stock units paid in stock that were granted in 2008, 2007 and 2006 was approximately $53,
$45 and $41 per share, respectively.
Activity for restricted stock units paid in stock is as follows:
Weighted-
Average
Grant
Number of Date Fair
(Shares in thousands) Shares Value
Outstanding at beginning of year, nonvested 2,506 $ 37.40
Granted 764 53.09
Vested (521) 28.46
Forfeited (308) 40.45
Outstanding at end of year, nonvested 2,441 $ 43.83
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) 2008 2007 2006
Subject only to service conditions:
Value of shares, options or units vested $ 47 $ 38 $ 32
Intrinsic value of cash awards paid 10 10 13
Subject to performance vesting conditions:
Value of units vested 10 46 42
Intrinsic value of cash awards paid 40 42 37
Intrinsic value of amounts paid under DIP 3 4 1
As of January 3, 2009, we had not recognized $51 million of total compensation cost associated with unvested awards subject only to service
conditions. As of January 3, 2009, we had not recognized $3 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