US Bank 2002 Annual Report Download - page 95

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The pro forma disclosures include options granted The estimated fair value of the options is amortized to
through December 31, 2002, and are not likely to be expense over the options’ respective vesting periods.
representative of the pro forma disclosures for future years.
The following table shows proforma compensation expense, net income and earnings per share adjusted for the impact of
following SFAS 123 for stock-based compensation.
Year Ended December 31,
(Dollars in Million, Except Per Share Data) 2002 2001(a) 2000
Reported compensation expense******************************************************* $2,776.9 $2,713.3 $2,826.9
Stock-based compensation****************************************************** 198.5 361.4 193.5
Proforma compensation expense**************************************************** $2,975.4 $3,074.7 $3,020.4
Reported net income ***************************************************************** $3,289.2 $1,706.5 $2,875.6
Stock-based compensation, net of tax ******************************************** (121.1) (227.6) (123.5)
Proforma net income ************************************************************** $3,168.1 $1,478.9 $2,752.1
Earnings per share
Reported net income ************************************************************** $ 1.72 $ .89 $ 1.51
Stock-based compensation, net of tax ******************************************** (.07) (.12) (.07)
Proforma net income ************************************************************** $ 1.65 $ .77 $ 1.44
Diluted earnings per share
Reported net income ************************************************************** $ 1.71 $ .88 $ 1.50
Stock-based compensation, net of tax ******************************************** (.07) (.12) (.07)
Proforma net income ************************************************************** $ 1.64 $ .76 $ 1.43
(a) Pro forma earnings per share for 2001 was impacted by changes in control provisions that accelerated the vesting of stock options granted to USBM employees.
2000
Weighted-average assumptions in option valuation 2002 2001 Firstar USBM
Risk-free interest rates ************************************************ 3.3% 4.6% 5.4% 6.1%
Dividend yields******************************************************* 3.0% 3.0% 2.5% 3.0%
Stock volatility factor ************************************************** .41 .42 .37 .37
Expected life of options (in years) ************************************** 6.0 4.5 2.5-5.5 4.7
U.S. Bancorp 93