US Bank 2008 Annual Report Download - page 99

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In 2009, the Company expects to contribute $22 million to its non-qualified pension plans and to make no contributions to its
postretirement welfare plan.
The following benefit payments are expected to be paid from the retirement plans:
(Dollars in Millions)
Pension
Plans
Postretirement
Welfare Plan (a)
Estimated Future Benefit Payments
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $151 $ 15
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 18
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 19
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 21
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 22
2014 – 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791 125
(a) Net of participant contributions.
Federal subsidies expected to be received by the postretirement welfare plan are not significant to the Company.
Note 18 STOCK-BASED COMPENSATION
As part of its employee and director compensation
programs, the Company may grant certain stock awards
under the provisions of the existing stock compensation
plans, including plans assumed in acquisitions. The plans
provide for grants of options to purchase shares of common
stock at a fixed price equal to the fair value of the
underlying stock at the date of grant. Option grants are
generally exercisable up to ten years from the date of grant.
In addition, the plans provide for grants of shares of
common stock or stock units that are subject to restriction
on transfer prior to vesting. Most stock awards vest over
three to five years and are subject to forfeiture if certain
vesting requirements are not met. Stock incentive plans of
acquired companies are generally terminated at the merger
closing dates. Option holders under such plans receive the
Company’s common stock, or options to buy the Company’s
stock, based on the conversion terms of the various merger
agreements. The historical stock award information
presented below has been restated to reflect the options
originally granted under acquired companies’ plans. At
December 31, 2008, there were 45 million shares (subject to
adjustment for forfeitures) available for grant under various
plans.
STOCK OPTIONS AWARDS
The following is a summary of stock options outstanding and exercised under various stock options plans of the Company:
Year Ended December 31
Stock
Options/Shares
Weighted-
Average
Exercise Price
Weighted-
Average
Remaining
Contractual
Te r m
Aggregate
Intrinsic Value
(in millions)
2008
Number outstanding at beginning of period . . . . . . . . . . . . . . . . . . . . . . . 91,211,464 $27.22
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,464,085 32.19
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,528,238) 25.27
Cancelled (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,854,300) 31.94
Number outstanding at end of period (b) . . . . . . . . . . . . . . . . . . . . . . . . 82,293,011 $29.08 6.0 $ (335)
Exercisable at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,787,801 $26.11 4.0 $ (48)
2007
Number outstanding at beginning of period . . . . . . . . . . . . . . . . . . . . . . . 97,052,221 $25.42
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,810,737 35.81
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,595,906) 23.66
Cancelled (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,055,588) 30.59
Number outstanding at end of period (b) . . . . . . . . . . . . . . . . . . . . . . . . 91,211,464 $27.22 4.9 $ 413
Exercisable at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,701,270 $24.82 3.5 $ 434
2006
Number outstanding at beginning of period . . . . . . . . . . . . . . . . . . . . . . . 125,983,461 $24.38
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,464,197 30.16
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38,848,953) 23.39
Cancelled (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,546,484) 28.09
Number outstanding at end of period (b) . . . . . . . . . . . . . . . . . . . . . . . . 97,052,221 $25.42 5.1 $1,045
Exercisable at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,747,675 $24.01 4.0 $ 874
(a) Options cancelled includes both non-vested (i.e., forfeitures) and vested options.
(b) Outstanding options include stock-based awards that may be forfeited in future periods, however the impact of the estimated forfeitures is reflected in compensation expense.
U.S. BANCORP 97