Union Pacific 2001 Annual Report Download - page 77

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51
Changes in common stock options outstanding were as follows:
Shares
Weighted-Average
Exercise Price
Balance January 1, 1999 ............................................................................... 26,499,579 $49.77
Granted......................................................................................................... 44,250 54.25
Exercised....................................................................................................... (921,169) 31.58
Expired / surrendered .................................................................................. (231,190) 53.06
Balance December 31, 1999......................................................................... 25,391,470 50.41
Granted......................................................................................................... 253,250 41.96
Exercised....................................................................................................... (175,900) 30.05
Expired / surrendered .................................................................................. (126,520) 48.64
Balance December 31, 2000......................................................................... 25,342,300 50.48
Granted......................................................................................................... 1,798,150 49.91
Exercised....................................................................................................... (2,044,997) 38.63
Expired / surrendered .................................................................................. (1,906,130) 54.82
Balance December 31, 2001......................................................................... 23,189,323 $51.12
Stock options outstanding at December 31, 2001 were as follows:
Number Outstanding
Weighted-Average
Remaining
Contractual Life
Weighted-Average
Exercise Price
Range of exercise prices:
$20.60 to $42.25................................................... 2,389,286 3 $32.78
$42.87 to $52.53................................................... 6,116,692 7 47.50
$52.88 to $62.40................................................... 14,683,345 6 55.62
Balance December 31, 2001..................................... 23,189,323 6 $51.12
Stock options exercisable at December 31, 2001 were as follows:
Number
Exercisable
Weighted-Average
Exercise Price
Range of exercise prices:
$20.60 to $42.25 ....................................................................................... 2,386,786 $32.77
$42.87 to $52.53 ....................................................................................... 4,359,242 46.54
$52.88 to $62.40 ....................................................................................... 14,307,745 55.60
Balance December 31, 2001 ......................................................................... 21,053,773 $51.13
Other Incentive Plans – The Corporation's plans provide for awarding retention shares of common stock or stock units
(the right to receive shares of common stock) to eligible employees. These awards are subject to forfeiture if employment
terminates during the prescribed retention period, generally three years, or, in some cases, if a certain prescribed stock
price or other financial criteria are not met. Restricted stock awards are issued to non-employee directors and are subject
to forfeiture if certain service requirements are not met. During the year ended December 31, 2001, 387,540 retention
shares, restricted shares and stock units were issued at a weighted-average fair value of $49.95. During 2000, 283,059
retention shares, restricted shares and stock units were issued at a weighted-average fair value of $41.21. During 1999,
26,300 retention shares and stock units were issued at a weighted-average fair value of $52.41. A portion of the retention
awards issued in 1999 were subject to stock price or performance targets. The cost of retention and restricted awards is
amortized to expense over the retention period.
In November 2000, the Corporation approved the 2001 Long Term Plan (LTP). The LTP includes certain performance
criteria and a retention requirement. During the year ended December 31, 2001, 1,019,500 performance retention shares
and stock units were issued at a weighted-average fair value of $50.07. The cost of the LTP is expensed over the
performance period which ends January 31, 2004.