Incentive Stock Programs

Note 9 — Incentive Stock Programs

In connection with the completion of the St. Jude Medical acquisition, unvested St. Jude Medical stock options and restricted stock units were assumed by Abbott and converted into Abbott options and restricted stock units (as applicable) of substantially equivalent value, in accordance with the merger agreement. The number of shares underlying the converted options was 7,364,571 at a weighted average exercise price of $30.50. The number of restricted stock units converted was 2,324,500 at a weighted average grant date fair value of $37.69.

In the first three months of 2017, Abbott granted 4,026,729 stock options, 544,153 restricted stock awards and 6,738,866 restricted stock units under its incentive stock programs. At March 31, 2017, approximately 32 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at March 31, 2017 is as follows:

	Outstanding		Exercisable
Number of shares	42,692,261		25,325,001
Weighted average remaining life (years)	6.0		4.6
Weighted average exercise price	$	35.33	$	33.42
Aggregate intrinsic value (in millions)	$	403	$	288

The total unrecognized share-based compensation cost at March 31, 2017 amounted to approximately $470 million which is expected to be recognized over the next three years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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