Federal Express 2006 Annual Report Download - page 80

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FEDEX CORPORATION
78
The following table summarizes information about our stock option plans for the years ended May 31:
2006 2005 2004
Weighted- Weighted- Weighted-
Average Average Average
Exercise Exercise Exercise
Shares Price Shares Price Shares Price
Outstanding at beginning of year 17,359,382 $51.96 17,349,307 $46.39 17,315,116 $38.88
Granted 3,324,135 90.82 2,718,651 76.21 3,937,628 64.96
Exercised (3,345,827) 43.33 (2,540,324) 39.14 (3,724,605) 31.05
Forfeited (238,164) 79.25 (168,252) 63.27 (178,832) 46.71
Outstanding at end of year 17,099,526 60.82 17,359,382 51.96 17,349,307 46.39
Exercisable at end of year 9,657,410 47.79 9,660,334 42.34 8,747,523 38.28
The following table summarizes information about stock options outstanding at May 31, 2006:
Options Outstanding Options Exercisable
Weighted- Weighted- Weighted-
Average Average Average
Range of Number Remaining Exercise Number Exercise
Exercise Prices Outstanding Contractual Life Price Exercisable Price
$15.34 – 22.16 96,674 1.4 years $17.70 96,674 $17.70
23.81– 35.69 1,671,125 1.8 years 30.14 1,671,125 30.14
35.89– 53.77 5,450,650 5.2 years 44.81 4,820,318 43.65
55.94– 83.73 6,428,018 6.9 years 66.67 2,911,443 63.42
84.57– 117.52 3,453,059 9.0 years 91.28 157,850 91.59
15.34– 117.52 17,099,526 6.2 years 60.82 9,657,410 47.79
Total equity compensation shares outstanding or available for grant represented approximately 8.1% at May 31, 2006 and 6.8% at
May 31, 2005, of the total common and equity compensation shares outstanding and equity compensation shares available for grant.
RESTRICTED STOCK PLANS
Under the terms of our restricted stock plans, shares of common stock are awarded to key employees. All restrictions on the shares
expire ratably over a four-year period. Shares are valued at the market price at the date of award. Compensation related to these plans
is recorded as a reduction of common stockholders’ investment and is amortized to expense over the explicit service period. Annual
compensation cost for the restricted stock plans was approximately $29 million for 2006, $26 million for 2005 and $25 million for 2004.
The following table summarizes information about restricted stock awards for the years ended May 31:
2006 2005 2004
Weighted- Weighted- Weighted-
Average Average Average
Shares Fair Value Shares Fair Value Shares Fair Value
Awarded 233,939 $90.12 218,273 $80.24 282,423 $67.11
Forfeited 13,791 78.42 21,354 55.41 10,000 43.41
At May 31, 2006, there were 1,076,617 shares available for future awards under these plans.