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72
McKESSON CORPORATION
FINANCIAL NOTES (Continued)
The following table summarizes stock option activity during 2013, 2012 and 2011:
(In millions, except per share data) Shares
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic
Value (2)
Outstanding, March 31, 2010 16 $41.26 3 $ 394
Granted 1 67.95
Exercised (8) 37.63
Outstanding, March 31, 2011 9 $ 49.01 4 $ 269
Granted 1 83.30
Exercised (2) 42.20
Outstanding, March 31, 2012 8 $56.88 4 $ 226
Granted 1 87.66
Exercised (2) 47.63
Outstanding, March 31, 2013 7 $ 65.79 4 $ 260
Vested and expected to vest (1) 6 $ 65.37 4 $ 259
Vested and exercisable, March 31, 2013 3 56.19 3 154
(1) The number of options expected to vest takes into account an estimate of expected forfeitures.
(2) The intrinsic value is calculated as the difference between the period-end market price of the Company's common stock and the exercise price
of “in-the-money” options.
The following table provides data related to stock option activity:
Years Ended March 31,
(In millions, except per share data) 2013 2012 2011
Weighted-average grant date fair value per stock option $19.63 $ 20.32 $ 18.37
Aggregate intrinsic value on exercise $ 107 $ 108 $ 276
Cash received upon exercise $ 106 $ 113 $ 319
Tax benefits realized related to exercise $ 41 $ 40 $ 106
Total fair value of stock options vested $ 24 $ 23 $ 21
Total compensation cost, net of estimated forfeitures, related to unvested
stock options not yet recognized, pre-tax $ 37 $ 40 $ 41
Weighted-average period in years over which stock option compensation
cost is expected to be recognized 1 1 1
RSUs and PeRSUs
RSUs, which entitle the holder to receive at the end of a vesting term a specified number of shares of the Company's
common stock, are accounted for at fair value at the date of grant. Total compensation expense for RSUs under our stock
plans is determined by the product of the number of shares that are expected to vest and the grant date market price of the
Company's common stock. The Compensation Committee determines the vesting terms at the time of grant. These awards
generally vest in three to four years. We recognize expense for RSUs on a straight-line basis over the requisite service period.