Raytheon 2014 Annual Report Download - page 112

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
103
LTPP activity related to the expected units was as follows:
Units
(in thousands)
Weighted-
Average
Grant Date
Fair Value
Outstanding at December 31, 2011 991 $ 50.07
Granted 484 50.83
Increase 407 53.32
Vested (462) 46.04
Outstanding at December 31, 2012 1,420 52.57
Granted 402 61.38
Increase 398 53.86
Vested (383) 55.74
Forfeited (10) 51.22
Outstanding at December 31, 2013 1,827 54.13
Granted 280 97.59
Increase 99 39.50
Vested (664) 52.33
Forfeited (134) 75.80
Outstanding at December 31, 2014 1,408 $ 60.53
The increase above relates to changes in the amount of expected awards as achievement is measured against performance
goals.
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.
The aggregate intrinsic value of options outstanding at December 31, 2014, 2013 and 2012 was less than $1 million, $3 million
and $23 million, respectively. The total intrinsic value of options exercised in the years ended December 31, 2014, 2013 and
2012 was $3 million, $21 million and $38 million, respectively.
As of December 31, 2014 and December 31, 2013, there were 2 thousand and 52 thousand outstanding options, respectively,
all of which were fully vested and exercisable. No options vested during the years ended December 31, 2014 and December 31,
2013.
Note 13: 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 Benefits plans was as follows:
(In millions) 2014 2013
Domestic Pension Benefits plan $ 19,352 $ 18,822
Foreign Pension Benefits plan 868 806
We maintain a defined contribution plan that includes a 401(k) plan. Covered employees hired or rehired after January 1,
2007, are eligible for a Company contribution based on age and service, instead of participating in our pension plans. These
and other covered employees are eligible to contribute up to a specific percentage of their pay to the 401(k) plan. We match
the employee’s contribution, generally up to 3% or 4% of the employee’s pay, which is invested in the same way as employee