Fannie Mae 2005 Annual Report Download - page 285

Directors. The Board of Directors determined that we exceeded the target goal in December 2003 and the EPS
Challenge options vested in January 2004.
The following table displays nonqualified stock option activity for the years ended December 31, 2005, 2004
and 2003.
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
2005 2004 2003
For the Year Ended December 31,
Balance, January 1 . . . 24,849 $67.10 $21.65 26,077 $62.78 $20.71 25,131 $59.16 $19.94
Granted . . . . . . . . . . . 16 65.03 16.97 2,595 78.04 20.83 3,747 68.40 19.42
Exercised . . . . . . . . . . (1,356) 30.24 7.98 (3,263) 39.63 12.52 (2,302) 30.52 9.28
Forfeited and/or
expired. . . . . . . . . . (1,545) 73.19 22.99 (560) 76.53 25.54 (499) 71.60 24.74
Balance,
December 31 . . . . . 21,964 $68.93 $22.39 24,849 $67.10 $21.65 26,077 $62.78 $20.71
Options exercisable,
December 31 . . . . . 18,858 $68.19 $22.75 18,760 $64.73 $21.74 15,867 $58.27 $19.32
(1)
Options in thousands.
The following table displays information about our nonqualified stock options outstanding as of December 31,
2005.
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, 2005
$ 18.00-$35.00 . . . . . . . . . . . . . . . . . . . . . . . . 58 0.2 $33.28 58 $33.28
35.01-53.00 . . . . . . . . . . . . . . . . . . . . . . . . . 2,779 1.6 46.69 2,779 46.69
53.01-70.00 . . . . . . . . . . . . . . . . . . . . . . . . . 8,449 4.7 65.76 6,994 65.28
70.01-87.00 . . . . . . . . . . . . . . . . . . . . . . . . . 10,678 5.5 77.42 9,027 77.29
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,964 4.7 yrs. $68.93 18,858 $68.19
(1)
Options in thousands.
Employee Stock Purchase Program Plus
The Employee Stock Purchase Program Plus consists of two parts: (i) an opportunity 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”). Under the ESPP Component, employees could purchase shares at 95% of the
stock price on the grant date. Under the Plus Component, employees were granted a stock bonus contingent
upon meeting our predetermined corporate thresholds. There was no offering for 2005.
In 2004, we issued 2,568 shares of common stock to employees who retired during the year under the 2004
offering of the ESPP Component. No additional issuances were made under the 2004 offering as the stock
F-56
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)