US Bank 2001 Annual Report Download - page 76

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grant. In addition, the plans provide for grants of shares of Restricted shares vest over three to seven years.
common stock which are subject to restriction on transfer Compensation expense for restricted stock is based on the
and to forfeiture if certain vesting requirements are not met. market price of the Company stock at the time of the grant
With respect to stock option and stock compensation and amortized on a straight-line basis over the vesting
plans, the Company has elected to follow APB 25 in period. Compensation expense related to the restricted
accounting for its employee stock incentive and purchase stock was $71.9 million, $43.4 million and $69.5 million in
plans. Under APB 25, because the exercise price of the 2001, 2000 and 1999, respectively.
Company's employee stock options equals the market price Stock incentive plans of acquired companies are
of the underlying stock on the date of grant, no generally terminated at the merger closing dates. Option
compensation expense is recognized. On the date exercised, holders under such plans receive the Company's common
if new shares are issued, the option proceeds equal to the stock, or options to buy the Company's stock, based on the
par value of the shares are credited to common stock and conversion terms of the various merger agreements. The
additional proceeds are credited to capital surplus. If historical option information presented below has been
treasury shares are issued, the option proceeds equal to the restated to reÖect the options originally granted under
average treasury share price are credited to treasury stock acquired companies' plans.
and additional proceeds are credited to capital surplus. At December 31, 2001, there were 64.4 million shares
Option grants are generally exercisable up to ten years (subject to adjustment for forfeitures) available for grant
from the date of grant and vest over three to Ñve years. under various plans.
The following is a summary of stock options outstanding and exercised under various stock option plans of the Company:
2001 2000 1999
Weighted- Weighted- Weighted-
Average Average Average
Exercise Exercise Exercise
Stock Options Price Stock Options Price Stock Options Price
Stock option plans
Number outstanding at beginning
of year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 153,396,226 $22.80 153,163,030 $22.74 107,405,102 $17.97
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 65,144,310 21.25 22,633,170 19.64 75,922,950 27.08
Assumed/converted ÏÏÏÏÏÏÏÏÏÏ 8,669,285 16.40 447,341 6.85 1,210,738 16.58
Exercised ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (12,775,067) 13.44 (10,017,357) 11.02 (22,332,730) 13.03
Cancelled ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (12,824,489) 23.29 (12,829,958) 19.91 (9,043,030) 25.63
Number outstanding at end of year ÏÏ 201,610,265 $22.58 153,396,226 $22.80 153,163,030 $22.74
Exercisable at end of year ÏÏÏÏÏÏÏÏ 117,534,343 $22.36 68,870,745 $19.78 70,527,758 $18.00
Restricted share plans
Number outstanding at beginning
of year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,377,137 4,212,954 6,072,217
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,021,887 4,110,440 1,379,808
Assumed/converted ÏÏÏÏÏÏÏÏÏÏ 298,988 Ì Ì
Cancelled/vested ÏÏÏÏÏÏÏÏÏÏÏÏÏ (5,520,424) (1,946,257) (3,239,071)
Number outstanding at end of year ÏÏ 2,177,588 6,377,137 4,212,954
Weighted-average fair value of
shares grantedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 6.76 $ 6.32 $ 7.20
U.S. Bancorp
74