E-Z-GO 2014 Annual Report Download - page 69

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The stock option activity during 2014 is provided below:
(Options in thousands)
Number of
Options
Weighted-
Average
Exercise
Price
Outstanding at beginning of year
9,018
$ 27.57
Granted
1,838
39.65
Exercised
(1,842)
(26.07)
Forfeited or expired
(377)
(38.35)
Outstanding at end of year
8,637
$ 29.99
Exercisable at end of year
4,739
$ 27.22
At January 3, 2015, our outstanding options had an aggregate intrinsic value of $108 million and a weighted-average remaining
contractual life of six years. Our exercisable options had an aggregate intrinsic value of $73 million and a weighted-average
remaining contractual life of five years at January 3, 2015. The total intrinsic value of options exercised during 2014, 2013 and
2012 was $25 million, $10 million and $11 million, respectively.
Restricted Stock Units
We issue restricted stock units settled in both cash and stock (vesting one-third each in the third, fourth and fifth year following the
year of the grant), which include the right to receive dividend equivalents. The fair value of these units is based on the trading
price of our common stock and is recognized ratably over the vesting period. For units settled in stock, we use the trading price on
the grant date, while units settled in cash are remeasured using the price at each reporting period date. Prior to 2012, we issued
restricted stock units that vested in equal installments over five years. The 2014 activity for restricted stock units is provided
below:
Units Payable in Stock
Units Payable in Cash
(Shares/Units in thousands)
Number of
Shares
Weighted-
Average Grant
Date Fair Value
Number of
Units
Weighted-
Average Grant
Date Fair Value
Outstanding at beginning of year, nonvested
780
$ 27.56
2,025
$ 23.73
Granted
217
39.44
433
39.65
Vested
(70)
(25.69)
(593)
(16.54)
Forfeited
(21)
(27.93)
(199)
(28.65)
Outstanding at end of year, nonvested
906
$ 30.59
1,666
$ 29.84
The fair value of the restricted stock awards that vested and/or amounts paid under these awards is as follows:
(In millions)
2014
2013
2012
Fair value of awards vested
$ 25
$ 26
$ 35
Cash paid
23
23
25
Performance Share Units
The fair value of share-based compensation awards accounted for as liabilities includes performance share units, which are paid in
cash in the first quarter of the year following vesting. Payouts under performance share units vary based on certain performance
criteria generally set for each year of a three-year performance period. The performance share units vest at the end of three years.
The fair value of these awards is based on the trading price of our common stock and is remeasured at each reporting period date.
The 2014 activity for our performance share units is as follows:
(Units in thousands)
Number of
Units
Weighted-
Average
Grant Date
Fair Value
Outstanding at beginning of year, nonvested
895
$ 28.08
Granted
296
39.70
Vested
(468)
(27.76)
Forfeited
(46)
(28.19)
Outstanding at end of year, nonvested
677
$ 33.38
63
Textron Inc. Annual Report • 2014