US Bank 2004 Annual Report Download - page 97
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Please find page 97 of the 2004 US Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Additional information regarding stock options outstanding as of December 31, 2004, is as follows:
Options Outstanding Exercisable Options
Weighted-
Average Weighted- Weighted-
Remaining Average Average
Contractual Exercise Exercise
Range of Exercise Prices Shares Life (Years) Price Shares Price
$3.28 — $10.00 ************************************** 726,431 1.0 $ 7.06 724,664 $ 7.05
$10.01 — $15.00 ************************************* 3,072,352 2.7 11.51 2,835,094 11.39
$15.01 — $20.00 ************************************* 26,115,430 6.1 18.81 19,671,582 18.71
$20.01 — $25.00 ************************************* 63,059,643 6.1 22.39 45,466,324 22.54
$25.01 — $30.00 ************************************* 37,433,500 5.1 28.55 28,066,483 28.66
$30.01 — $35.00 ************************************* 4,020,322 2.4 32.73 3,963,401 32.75
$35.01 — $36.95 ************************************* 299,607 2.4 35.89 299,607 35.89
134,727,285 5.6 $23.41 101,027,155 $23.51
Stock-based compensation was $175.6 million in 2004, Stock-based compensation expense is based on the fair
compared with $158.1 million and $185.0 million in 2003 value of the award at the date of grant or modification. The
and 2002, respectively. At the time employee stock options fair value of options was estimated using the Black-Scholes
expire, are exercised or cancelled, the Company determines option-pricing model requiring the use of subjective
the tax benefit associated with the stock award and under valuation assumptions. Because employee stock options
certain circumstances may be required to recognize an have characteristics that differ from those of traded options,
adjustment to tax expense. On an after-tax basis, stock- including vesting provisions and trading limitations that
based compensation was $138.5 million in 2004, compared impact their liquidity, the determined value used to measure
with $123.4 million and $113.3 million in 2003 and 2002, compensation expense may vary from their actual fair
respectively. value.
The following table provides a summary of the valuation assumptions utilized by the Company to determine the estimated
value of stock option grants:
Weighted-average assumptions in stock option valuation 2004 2003 2002
Risk-free interest rates************************************************************************************** 3.5% 2.8% 3.3%
Dividend yields ******************************************************************************************** 3.5% 3.0% 3.0%
Stock volatility factor *************************************************************************************** .40 .40 .41
Expected life of options (in years) **************************************************************************** 5.9 5.3 6.0
U.S. BANCORP 95