Raytheon 2010 Annual Report Download - page 106

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Stock Options
In 2004, we changed the primary form of our broad-based equity compensation from stock options to restricted stock.
There have been no stock options granted since 2005.
Stock option activity was as follows:
(Share amounts in thousands) Shares
Weighted-
Average
Option Price
Weighted-
Average
Remaining
Contractual
Term
(In years)
Aggregate
Intrinsic
Value
(In millions)
Outstanding at December 31, 2007 17,118 $42.45 3.3 $312
Exercised (3,684) 43.01
Forfeited or expired (900) 58.08
Outstanding at December 31, 2008 12,534 41.16 2.7 124
Exercised (1,353) 30.21
Forfeited or expired (2,449) 68.17
Outstanding at December 31, 2009 8,732 35.28 2.3 142
Exercised (2,167) 30.15
Forfeited or expired (115) 24.40
Outstanding at December 31, 2010 6,450 $37.23 1.5 $ 59
Exercisable at December 31, 2010 6,450 $37.23 1.5 $ 59
The total intrinsic value of options exercised in the years ended December 31, 2010, 2009 and 2008 was $51 million, $24
million and $71 million, respectively.
As of December 31, 2010 and December 31, 2009 all outstanding options were fully vested and exercisable. There were no
options vested during the years ended December 31, 2009 and December 31, 2010.
The following table summarizes information about stock options outstanding and exercisable at December 31, 2010:
(Share amounts in thousands) Options Outstanding and Exercisable
Exercise Price Range Shares
Weighted- Average
Remaining Contractual
Life (In Years)
Weighted-
Average
Exercise
Price
$19.38 to $29.78 1,372 1.0 $29.47
$30.00 to $39.21 2,074 2.4 $31.99
$40.13 to $44.45 3,004 1.4 $44.41
Total 6,450 1.5 $37.23
Shares exercisable at the corresponding weighted-average exercise price at December 31, 2010, 2009 and 2008, were
6.5 million at $37.23, 8.7 million at $35.28 and 12.5 million at $41.16, respectively.
Note 14: Pension and Other Employee Benefits
We have pension plans covering the majority of our employees, including certain employees in foreign countries
(Pension Benefits). Our primary pension obligations relate to our domestic IRS qualified pension plans. We also provide
certain health care and life insurance benefits to retired employees and to eligible employees upon retirement through
other postretirement benefit plans (Other Benefits).
The fair value of plan assets for our domestic and foreign Pension Benefit plans was $14,502 million and $597 million at
December 31, 2010, respectively, and $12,294 million and $545 million at December 31, 2009, respectively.
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