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60 JOHNSON & JOHNSON 2010 ANNUAL REPORT
A summary of option activity under the Plan as of January 2, 2011,
January 3, 2010 and December 28, 2008 and changes during the
years ending on those dates is presented below: Aggregate
Weighted Aggregate
Outstanding Average Intrinsic Value
(Shares in Thousands)Shares Exercise Price(Dollars in Millions)
Shares at December 30, 2007228,629 $56.83 $2,411
Options granted 22,428 61.80
Options exercised (30,033) 50.27
Options canceled/forfeited (5,525) 61.90
Shares at December 28, 2008 215,499 58.14 $597
Options granted 21,576 58.32
Options exercised (18,225) 50.97
Options canceled/forfeited (6,131) 61.85
Shares at January 3, 2010 212,719 58.66 $1,310
Options granted 13,996 62.62
Options exercised (25,020) 51.84
Options canceled/forfeited (8,005) 62.36
Shares at January 2, 2011 193,690 $59.68 $648
The total intrinsic value of options exercised was $278 million,
$184 million and $506 million in 2010, 2009 and 2008, respectively.
The following table summarizes stock options outstanding and
exercisable at January 2, 2011:
(Shares in Thousands)Outstanding Exercisable
_______________________________________________________
__________________
Average Average
Exercise Average Exercise Exercise
Price Range Options Life(1)PriceOptions Price
$25.00-$40.08 50 0.9 $29.53 50 $29.53
$41.26-$49.86 532 0.5 47.43 532 47.43
$50.52-$52.80 20,155 2.1 52.20 20,115 52.20
$53.00-$53.93 24,114 3.0 53.93 24,114 53.93
$54.04-$57.30 24,332 1.1 57.28 24,332 57.28
$57.44-$58.34 39,343 6.5 58.33 20,175 58.33
$58.42-$65.10 33,020 7.8 62.11 1,147 61.21
$65.62-$68.37 52,144 4.8 65.97 50,810 65.98
193,690 4.7 $59.68 141,275 $59.25
(1)Average contractual life remaining in years.
Stock options exercisable at January 3, 2010 and December 28,
2008 were 148,349 at an average price of $57.26 and an average
lifeof 5.0 years and 144,962 at an average price of $56.25 and an
average life of 5.3 years, respectively.
RESTRICTED SHARE UNITS
The Company grants restricted share units with a vesting period of
three years. The Company settles employee stock issuances with
treasury shares. Treasury shares are replenished throughout the
year for the number of shares used for employee stock issuances.
A summary of share activity under the Plan as of January 2, 2011:
Outstanding
(Shares in Thousands)Shares
Shares at December 30, 200713,661
Granted 10,105
Issued (40)
Canceled/forfeited (1,468)
Shares at December 28, 2008 22,258
Granted 11,172
Issued (5,714)
Canceled/forfeited (1,392)
Shares at January 3, 2010 26,324
Granted 12,003
Issued (6,297)
Canceled/forfeited (2,296)
Shares at January 2, 2011 29,734
The average fair value of the restricted share units granted was
$56.69, $52.79 and $56.70 in 2010, 2009 and 2008, respectively,
using the fair market value at the date of grant. The fair value of
restricted share units was discounted for dividends, which are not
paid on the restricted share units during the vesting period.
The fair value of restricted share units settled was $375.0 million,
$308.4 million and $2.5 million in 2010, 2009 and 2008,
respectively.