Fifth Third Bank 2010 Annual Report Download - page 116

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
114 Fifth Third Bancorp
The following table summarizes unvested RSAs by grant-date fair value at December 31, 2010:
Stock options
There were no stock options granted during 2010. Stock options
granted during 2009 were immaterial to the Bancorp’s
Consolidated Financial Statements. The weighted-average grant-
date fair value of stock options granted for the year ended 2008
was $2.87 per share.
The total intrinsic value of options exercised was immaterial
to the Bancorp’s Consolidated Financial Statements in 2010, 2009
and 2008. Cash received from options exercised during 2010 and
2009 was immaterial to the Bancorp’s Consolidated Financial
Statements in 2009. Cash received from options exercised was $3
million 2008. Tax benefits realized from exercised options were
immaterial to the Consolidated Financial Statements during 2010,
2009 and 2008. All stock options were vested at December 31,
2008, therefore, no stock options vested during 2010 or 2009. The
total grant-date fair value of stock options that vested during 2008
was immaterial to the Bancorp’s Consolidated Financial
Statements. As of December 31, 2010, the aggregate intrinsic
value of both outstanding options and exercisable options was
immaterial to the Consolidated Financial Statements.
2010 2009 2008
Stock Options (shares in thousands) Shares
Weighted-
Average
Exercise Price Shares
Weighted-
Average
Exercise Price Shares
Weighted-
Average
Exercise Price
Outstanding at January 1 15,504 $49.29 20,564 $48.97 23,645 $49.07
Granted (a) - - 1 8.59 1,133 11.57
Exercised (58) 8.76 (11) 8.33 (202) 15.32
Forfeited or expired (3,587) 40.54 (5,050) 48.06 (4,012) 40.73
Outstanding at December 31 11,859 $52.01 15,504 $49.29 20,564 $48.97
Exercisable at December 31 11,859 $52.01 15,504 $49.29 20,564 $48.97
(a) 2008 Options granted include 1,131 options assumed as part of the First Charter Corporation acquisition completed on June 6, 2008. These options were granted under a First
Charter Corporation Plan assumed by the Bancorp.
The following table summarizes outstanding and exercisable stock options by exercise price at December 31, 2010:
Other stock-based compensation
Under the phantom stock program, 488,703 and 299,681
respective phantom stock units were granted with a weighted
average grant price of $12.80 and $9.88, during the years ended
December 31, 2010 and 2009, respectively. The phantom stock
units vest immediately, however, none were settled during 2010 or
2009.
Performance units are payable contingent upon the Bancorp
achieving certain predefined performance targets over the three-
year measurement period. Awards granted during 2010 will be
entirely settled in stock. During 2009 and 2008, the awards
granted are payable 50% in stock and 50% in cash. The
performance targets are based on the Bancorp’s performance
relative to a defined peer group. During 2010, 2009 and 2008,
61,320, 1,118,958 and 186,044 performance units, respectively,
were granted by the Bancorp. These awards were granted at a
weighted-average grant-date fair value of $13.76, $3.96 and $19.18
per unit during 2010, 2009 and 2008, respectively.
Performance-based restricted shares were previously issued
by the Bancorp and were payable in stock and contingent upon
the Bancorp achieving certain predefined performance targets
over the one-year measurement period. These performance targets
were based on the Bancorp’s performance relative to a defined
peer group. If performance targets were met, the shares were
vested over a three-year period. The Bancorp granted 179,604
performance-based restricted shares during 2008 with a weighted-
Nonvested RSAs
Grant-Date Fair Value Per Share
Number of
RSAs at Year
End (000’s)
Weighted-
Average
Remaining
Contractual Life
(in years)
Under $10.00 604 1.2
$10.01-$20.00 3,641 1.6
$20.01-$30.00 151 1.2
$30.01-$40.00 728 0.6
Over $40.00 34 0.3
A
ll RSAs 5,158 1.4
Outstanding and Exercisable Stock Options
Exercise Price per Share
Number of
Options at
Year End
(000’s)
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Life
(in years)
Under $10.00 237 $9.43 0.8
$10.01-$20.00 894 13.64 3.0
$20.01-$30.00 201 25.38 1.2
$30.01-$40.00 140 36.23 3.3
Over $40.00 10,387 57.02 1.2
All stock options 11,859 $52.01 1.4