Kimberly-Clark 2010 Annual Report Download - page 58

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KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The weighted-average fair value of the options granted in 2010, 2009 and 2008 was estimated at $4.15,
$4.32 and $6.22, respectively, per option on the date of grant based on the following assumptions:
2010 2009 2008
Dividend yield ......................................................... 5.00% 5.60% 4.10%
Volatility .............................................................. 14.77% 19.81% 14.90%
Risk-free interest rate .................................................... 2.74% 2.39% 3.19%
Expected life—years .................................................... 6.4 6.6 6.4
As of December 31, 2010, the total remaining unrecognized compensation costs and amortization period are
as follows:
Millions
of dollars
Weighted-
Average
Service
Years
Nonvested stock options ..................................................... $15 1.0
Restricted shares and time-vested restricted share units ............................. $ 8 0.9
Nonvested performance-based restricted share units ................................ $37 1.3
Excess tax benefits, resulting from tax deductions in excess of the compensation cost recognized,
aggregating $6 million, $9 million and $8 million were classified as Other cash inflows under Financing
Activities for the years ended December 31, 2010, 2009, and 2008, respectively.
A summary of stock-based compensation under the Plans as of December 31, 2010 and the activity during
the year then ended is presented below:
Stock Options
Shares
(000’s)
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
(Millions
of dollars)
Outstanding at January 1, 2010 .............................. 24,912 $61.26
Granted ................................................ 3,825 61.02
Exercised ............................................... (2,359) 56.28
Forfeited or expired ....................................... (585) 63.86
Outstanding at December 31, 2010 ........................... 25,793 61.62 5.1 $84
Exercisable at December 31, 2010 ........................... 19,061 62.79 3.9 $51
The following summarizes the effect of the exercises of stock options for each year presented:
2010 2009 2008
(Millions of dollars)
Cash received .......................................................... $131 $165 $113
Income tax benefit received ............................................... 5811
Intrinsic value .......................................................... 19 30 18
54