Fannie Mae 2004 Annual Report Download - page 324

The following table displays nonqualified stock option activity for the years ended December 31, 2004, 2003
and 2002.
Options
(1)
Weighted-
Average
Exercise
Price
Weighted-
Average
Fair Value
at Grant Date Options
(1)
Weighted-
Average
Exercise
Price
Weighted-
Average
Fair Value
at Grant Date Options
(1)
Weighted
Average
Exercise
Price
Weighted-
Average
Fair Value
at Grant Date
2004 2003 2002
For the Year Ended December 31,
Balance, January 1 . . . . . . . 26,077 $62.78 $20.71 25,131 $59.16 $19.94 26,234 $57.05 $19.22
Granted . . . . . . . . . . . . . . . 2,595 78.04 20.83 3,747 68.40 19.42 869 78.39 26.24
Exercised . . . . . . . . . . . . . . (3,263) 39.63 12.52 (2,302) 30.52 9.28 (1,484) 29.58 9.37
Forfeited and/or expired . . . . (560) 76.53 25.54 (499) 71.60 24.74 (488) 69.97 24.50
Balance, December 31 . . . . . 24,849 $67.10 $21.65 26,077 $62.78 $20.71 25,131 $59.16 $19.94
Options exercisable,
December 31. . . . . . . . . . 18,760 $64.73 $21.74 15,867 $58.27 $19.32 15,619 $51.48 $16.71
(1)
Options in thousands.
The following table displays information about our nonqualified stock options outstanding as of December 31,
2004.
Range of Exercise Prices
Number of
Options
(1)
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
Number of
Options
(1)
Weighted-
Average
Exercise
Price
Options Outstanding Options Exercisable
As of December 31, 2004
$18.00 - $35.00. . . . . . . . . . . . . . . . . . . . . . . . 1,173 0.9 $27.45 1,173 $27.45
35.01 - 53.00. . . . . . . . . . . . . . . . . . . . . . . . 3,034 2.5 46.48 3,033 46.48
53.01 - 70.00. . . . . . . . . . . . . . . . . . . . . . . . 9,029 5.2 65.84 6,511 64.91
70.01 - 87.00. . . . . . . . . . . . . . . . . . . . . . . . 11,613 5.8 77.47 8,043 76.91
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,849 5.0 $67.10 18,760 $64.73
(1)
Options in thousands.
Employee Stock Purchase Program Plus
Prior to 2003, the Board of Directors established offerings to eligible employees under the 1985 Purchase
Plan. Beginning with the 2003 offering, the program was redesigned as a two-part program known as the
Employee Stock Purchase Program Plus. The new program consisted of two parts: (i) an opportunity to receive
the right to purchase shares of common stock pursuant to the 1985 Purchase Plan (the “ESPP Component”);
and (ii) a contingent stock bonus award pursuant to the provisions of the 1993 Plan for the 2003 offering and
the 2003 Plan for the 2004 offering (the “Plus Component”). In 2004 and 2003, under the ESPP Component,
employees could purchase shares at 95% of the stock price on the grant date. In contrast, prior offerings,
including the 2002 offering, permitted eligible employees to purchase shares at 85% of the stock price on the
date of grant. Under the Plus Component, employees were granted a stock bonus contingent upon meeting our
predetermined corporate thresholds.
Under the 2004 offering of the ESPP Component of the plan, we issued 2,568 shares of common stock in
2004, all of which were purchased by employees who retired during the year. Additionally, eligible employees
purchased 1,764,983 shares of common stock in 2004 at $61.28 per share under the 2003 offering. In 2003,
employees purchased 5,580 shares of common stock in 2003 at $68.46 per share under the 2002 offering. All
shares vest immediately upon purchase by the employee.
F-73
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)