Fifth Third Bank 2003 Annual Report Download - page 37

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Notes to Consolidated Financial Statements
FIFTH THIRD BANCORP AND SUBSIDIARIES
35
nonowner changes in equity and accumulated nonowner changes in
equity as of and for the years ended December 31:
($ in millions) 2003 2002 2001
Reclassification adjustment, pretax:
Change in unrealized net gains
(losses) arising during year. . $(667) 793 156
Reclassification adjustment for net
gains included in net income. . (84) (147) (171)
Change in unrealized gains (losses)
on securities available-for-sale $(751) 646 (15)
Related tax effects:
Change in unrealized net gains
(losses) arising during year. . $(234) 277 61
Reclassification adjustment for net
gains included in net income. . (30) (51) (66)
Change in unrealized gains (losses)
on securities available-for-sale $(264) 226 (5)
Reclassification adjustment, net of tax:
Change in unrealized net gains
(losses) arising during year. . $(433) 516 95
Reclassification adjustment for net
gains included in net income. . (54) (96) (105)
Change in unrealized gains (losses)
on securities available-for-sale $(487) 420 (10)
Accumulated nonowner changes in equity:
Beginning balance —
Unrealized net gains on
securities available-for-sale . . $(438)18 28
Current period change . . . . . . (487) 420 (10)
Ending balance —
Unrealized gains (losses) on
securities available-for-sale . . $(49) 438 18
Beginning balance —
Unrealized net losses on
qualifying cash flow hedges . . $(17) (10) —
Current period change, net of
tax of $5 million, and tax
benefit of $3 million and $6
million, respectively. . . . . . . 9(7) (10)
Ending balance —
Unrealized net losses on
qualifying cash flow hedges, net
of tax benefit of $4 million,
$9 million and $6 million,
respectively . . . . . . . . . . . . . . $(8) (17) (10)
Beginning balance —
Minimum pension liability . . $(52) ——
Current period change, net of
tax benefit of $6 million and
$28 million, respectively . . . (11) (52) —
Ending balance — Minimum
pension liability, net of tax
benefit of $34 million and
$28 million, respectively . . . $(63) (52) —
Ending balance —
Unrealized net gains (losses) on
securities available-for-sale . . $(49) 438 18
Unrealized net losses on
qualifying cash flow hedges . . (8) (17) (10)
Minimum pension liability . . . (63) (52) —
Accumulated nonowner
changes in equity . . . . . . . . $(120) 369 8
18. Common Stock and Treasury Stock
The following is a summary of the share activity within common
stock issued and treasury stock for the years ended December 31:
Common Treasury
(shares in millions)
Stock Stock
Shares at December 31, 2000 . . . . . . . . . . 569 —
Conversion of subordinated debentures
to common stock . . . . . . . . . . . . . . . . . 5 —
Stock options exercised . . . . . . . . . . . . . . . 4 —
Stock issued in acquisitions and other . . . . 5 —
Shares at December 31, 2001 . . . . . . . . . . 583 —
Shares acquired for treasury . . . . . . . . . . . — 12
Stock options exercised, including treasury
shares issued . . . . . . . . . . . . . . . . . . . . . — (3)
Shares at December 31, 2002 . . . . . . . . . . 583 9
Shares acquired for treasury . . . . . . . . . . . —12
Stock options exercised, including treasury
shares issued . . . . . . . . . . . . . . . . . . . . . — (4)
Shares at December 31, 2003 . . . . . . . . . . 583 17
19. Stock Options and Employee Stock Grants
The Bancorp has historically emphasized employee stock ownership.
Accordingly, the Bancorp encourages further ownership through
granting stock options to approximately 26% of its employees,
including approximately 5,000 officers. Share grants represented
approximately 1.1%, 1.1%, and 1.2% of average outstanding shares
in 2003, 2002 and 2001, respectively. Based on total stock options
outstanding and shares remaining for future option grants under
the 1998 Long Term Incentive Stock Plan, the Bancorp’s total
overhang is approximately eight percent.
The following provides detail of the number of shares to be
issued upon exercise of outstanding options and remaining shares
available for future issuance under all of the Bancorp's equity
compensation plans, as of December 31, 2003:
Number of Shares Weighted- Number of Shares
to Be Issued Upon Average Exercise Remaining Available
Exercise of Price of for Future Issuance
Outstanding Outstanding Under Equity
Plan Category (in thousands) Options Options Compensation Plans(d)
Equity compensation plans
approved by shareholders . . 38,530 $44.82 2,499 (a)
Equity compensation plans not
approved by shareholders . .
—
(b)
—
(b) 1,000 (c)
Total . . . . . . . . . . . . . . . . . . . 38,530 $44.82 3,499
(a) Includes .5 million shares issuable relating to deferred stock compensation plans.
(b) Excludes 2.2 million outstanding options awarded under plans assumed by the
Bancorp in connection with certain mergers and acquisitions. The Bancorp has not
made any awards under these plans and will make no additional awards under these
plans. The weighted-average exercise price of the outstanding options is $36.99 per share.
(c) Represents remaining shares of Fifth Third common stock under the Bancorp’s
1993 Stock Purchase Plan, as amended and restated.
(d) Excludes shares to be issued upon exercise of outstanding options.