Prudential 2006 Annual Report Download - page 151

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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
15. SHARE-BASED PAYMENTS (continued)
A summary of the status of the Company’s employee and non-employee stock option grants is as follows:
Employee Stock Options Non-employee Stock Options
Shares
Weighted Average
Exercise Price Shares
Weighted Average
Exercise Price
Outstanding at December 31, 2003 ......................... 20,791,374 $30.77 965,356 $28.25
Granted .............................................. 5,258,900 44.98 112,707 45.92
Exercised ............................................. (3,144,888) 30.29 (354,717) 28.26
Forfeited ............................................. (1,352,841) 33.51 (69,596) 29.48
Expired .............................................. — — — —
Transferred ........................................... (105,450) 27.79 105,450 27.79
Outstanding at December 31, 2004 ......................... 21,447,095 34.17 759,200 30.68
Granted .............................................. 4,015,482 56.00 98,901 57.03
Exercised ............................................. (4,933,974) 32.40 (242,158) 29.49
Forfeited ............................................. (711,568) 39.83 (24,654) 37.20
Expired .............................................. — — — —
Transferred ........................................... (10,581) 55.33 10,581 55.33
Outstanding at December 31, 2005 ......................... 19,806,454 38.82 601,870 35.66
Granted .............................................. 2,911,866 76.17 60,559 76.29
Exercised ............................................. (4,689,451) 34.60 (125,834) 31.57
Forfeited ............................................. (411,602) 60.27 (33,403) 37.25
Expired .............................................. (57,681) 29.84 (7,088) 28.65
Transferred ........................................... — — — —
Outstanding at December 31, 2006 ......................... 17,559,586 $45.67 496,104 $41.65
Vested and expected to vest at December 31, 2006 ............ 15,490,475 $43.93 417,125 $38.65
Exercisable at December 31, 2006 ......................... 11,007,037 $35.84 289,222 $29.17
The weighted average grant date fair value of employee stock options granted during the years ended December 31, 2006,
2005 and 2004 was $17.85, $12.94 and $11.47, respectively.
The total intrinsic value (i.e., market price of the stock less the option exercise price) of employee stock options exercised
during the years ended December 31, 2006, 2005 and 2004 was $201 million, $156 million and $54 million, respectively.
The weighted average fair value of non-employee options not vested at the Balance Sheet date, and non-employee options
vesting during the years ended December 31, 2006, 2005, and 2004 was $34.85, $28.99, and $22.19 respectively.
The total intrinsic value of non-employee options exercised during the years ended December 31, 2006, 2005 and 2004 was $6
million, $8 million and $7 million, respectively.
The weighted average remaining contractual term and the aggregate intrinsic value of stock options outstanding and
exercisable as of December 31, 2006 is as follows:
December 31, 2006
Employee Stock Options Non-employee Stock Options
Weighted
Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
Weighted
Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
(in years) (in millions) (in years) (in millions)
Outstanding .................................. 6.58 $706 6.20 $22
Vested and expected to vest ..................... 6.39 $649 5.89 $20
Exercisable .................................. 5.59 $551 4.94 $16
PRUDENTIAL FINANCIAL, INC. 2006 ANNUAL REPORT
149