John Deere 2010 Annual Report Download - page 46

46
Stock option activity at October 31, 2010 and changes
during 2010 in millions of dollars and shares follow:
Remaining
Contractual Aggregate
Exercise Term Intrinsic
Shares Price* (Years) Value
Outstanding at beginning
of year ................................. 19.8 $ 40.81
Grante d ..................................... 4.0 52.25
Exercised .................................. (4.4) 32.33
Outstanding at end of year ...... 19.4 4 5.12 6.3 6 $ 63 8 .1
Exercisable at end of year ...... 12.5 42.31 5.15 449. 2
* Weighted-averages
The weighted-average grant-date fair values of options
granted during 2010, 2009 and 2008 were $15.71, $13.06 and
$27.90, respectively. The total intrinsic values of options
exercised during 2010, 2009 and 2008 were $139 million,
$12 million and $226 million, respectively. During 2010,
2009 and 2008, cash received from stock option exercises was
$129 million, $16 million and $109 million with tax benefi ts
of $51 million, $4 million and $84 million, respectively.
The company’s nonvested restricted shares at October 31,
2010 and changes during 2010 in millions of shares follow:
Grant-Date
Shares Fair Value*
Nonvested at beginning of year ....................... .8 $ 51.72
Grante d ................................................................ .2 5 3.03
Vested ................................................................. (.3) 45.86
Nonvested at end of year .................................. .7 5 4.6 2
* Weighted-averages
During 2010, 2009 and 2008 the total share-based
compensation expense was $71 million, $70 million and
$71 million with recognized income tax benefi ts of $26 million,
$26 million and $26 million, respectively. At October 31, 2010,
there was $30 million of total unrecognized compensation cost
from share-based compensation arrangements granted under the
plans, which is related to nonvested shares. This compensation
is expected to be recognized over a weighted-average period
of approximately 2 years. The total fair values of stock options
and restricted shares vested during 2010, 2009 and 2008 were
$71 million, $66 million and $74 million, respectively.
The company currently uses shares that have been
repurchased through its stock repurchase programs to satisfy
share option exercises. At October 31, 2010, the company
had 114 million shares in treasury stock and 74 million shares
remaining to be repurchased under its current publicly
announced repurchase program (see Note 23).
25. OTHER COMPREHENSIVE INCOME ITEMS
Other comprehensive income items are transactions recorded in
stockholders’ equity during the year, excluding net income and
transactions with stockholders. Following are the items included
in other comprehensive income (loss) for Deere & Company
and the related tax effects in millions of dollars:
Before Tax After
Tax (Expense) Tax
Amount Credit Amount
2008
Retirement benefi ts adjustment:
Net actuarial losses and
prior service cost .............................. $ (567) $ 174 $ (393)
Reclassifi cation of actuarial losses
and prior service cost
to net income .................................... 142 (54) 88
Net unrealized loss ................................ (425) 120 (305)
Cumulative translation adjustment .............. (401) (5) (406)
Unrealized loss on derivatives:
Hedging loss ......................................... (73) 24 (49)
Reclassifi cation of realized loss
to net income .................................... 24 (8) 16
Net unrealized loss ................................ (49) 16 (33)
Unrealized loss on investments:
Holding loss .......................................... (38) 13 (25)
Reclassifi cation of realized
loss to net income ............................. 29 (10) 19
Net unrealized loss ................................ (9) 3 (6)
Total other comprehensive income (loss) .... $ (884) $ 134 $ (750)
2009
Retirement benefi ts adjustment:
Net actuarial losses and
prior service cost .............................. $ (4,198) $ 1,587 $(2,611)
Reclassifi cation of actuarial losses
and prior service cost
to net income .................................... 105 (31) 74
Net unrealized loss ................................ (4,093) 1,556 (2,537)
Cumulative translation adjustment .............. 326 1 327
Unrealized loss on derivatives:
Hedging loss ......................................... (90) 31 (59)
Reclassifi cation of realized loss
to net income .................................... 84 (29) 55
Net unrealized loss ................................ (6) 2 (4)
Unrealized gain on investments:
Holding loss .......................................... (793) 278 (515)
Reclassifi cation of realized
loss to net income ............................. 805 (282) 523
Net unrealized gain ................................ 12 (4) 8
Total other comprehensive income (loss) .... $ (3,761) $ 1,555 $ (2,206)
(continued)