Federal Express 2009 Annual Report Download - page 57

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
55
The options granted during the year ended May 31, 2009 are
primarily related to our principal annual stock option grant in
June 2008.
The following table summarizes information about vested and
unvested restricted stock for the year ended May 31, 2009:
Restricted Stock
Weighted-
Average Grant
Shares Date Fair Value
Unvested at June 1, 2008 424,985 $ 103.97
Granted 197,180 90.57
Vested (177,494) 98.05
Forfeited (1,930) 100.35
Unvested at May 31, 2009 442,741 $ 100.40
During the year ended May 31, 2008, there were 174,418 shares
of restricted stock granted with a weighted-average fair value of
$114.40. During the year ended May 31, 2007, there were 175,005
shares of restricted stock granted with a weighted-average fair
value of $109.90.
The following table summarizes information about stock option
vesting during the years ended May 31:
Stock Options
Vested During Fair Value
the Year (in millions)
2007 3,147,642 $ 65
2008 2,694,602 64
2009 2,414,815 64
As of May 31, 2009, there was $110 million of total unrecog-
nized compensation cost, net of estimated forfeitures, related to
unvested share-based compensation arrangements. This com-
pensation expense is expected to be recognized on a straight-line
basis over the remaining weighted-average vesting period of
approximately two years.
Total shares outstanding or available for grant related to equity
compensation at May 31, 2009 represented 9% of the total out-
standing common and equity compensation shares and equity
compensation shares available for grant.
Note 10: Computation of
Earnings Per Share
The calculation of basic and diluted earnings per common share
for the years ended May 31 was as follows (in millions, except
per share amounts):
2009 2008 2007
Net income $ 98 $ 1,125 $ 2,016
Weighted-average shares of
common stock outstanding 311 309 307
Common equivalent shares:
Incremental effect of shares from
exercise of stock options and
vesting of restricted stock 1 3 4
Weighted-average common and common
equivalent shares outstanding 312 312 311
Basic earnings per common share $ 0.31 $ 3.64 $ 6.57
Diluted earnings per common share $ 0.31 $ 3.60 $ 6.48
Antidilutive options excluded from
diluted earnings per common share 12.6 4.8 0.4
Note 11: Income Taxes
The components of the provision for income taxes for the years
ended May 31 were as follows (in millions):
2009 2008 2007
Current provision (benefi t)
Domestic:
Federal
$ (35) $ 514 $ 829
State and local 18 74 72
Foreign 214 242 174
197 830 1,075
Deferred provision (benefi t)
Domestic:
Federal
327 31 62
State and local 48 (2) 27
Foreign 7 32 35
382 61 124
$ 579 $ 891 $ 1,199
Pretax earnings of foreign operations for 2009, 2008 and 2007
were $106 million, $803 million and $648 million, respectively,
which represents only a portion of total results associated with
international shipments.