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beatandraise.com

1.0.0.3 false Employee Stock-Based Compensation Plans. false 1 $ false false iso4217_USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 iso4217_USD_per_shares Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares 0 shares Standard http://www.xbrl.org/2003/instance shares 0 5 Employee Stock-Based Compensation Plans. 3 us-gaap_DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div> 18.    Employee Stock-Based Compensation Plans.   The accounting guidance for stock-based compensation requires measurement of compensation cost for equity-based awards at fair value and recognition of compensation cost over the service period, net of estimated forfeitures (see Note 2).   The components of the Company’s stock-based compensation expense (net of cancellations) are presented below:   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="66%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">2009</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Fiscal 2008</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Fiscal 2007</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">One Month Ended December 31, 2008</td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom" colspan="11" align="center">(dollars in millions)</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Deferred stock </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,120</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,659</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,580</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">66</td> </tr> <tr> <td valign="top"> Stock options </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">17</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">83</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">240</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">5</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Employee Stock Purchase Plan(1) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">4</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">10</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">9</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr> <td valign="top"> Total(2) </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,141</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,752</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,829</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">71</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="3%" align="left">(1)</td> <td valign="top" align="left">The Company discontinued the Employee Stock Purchase Plan effective June 1, 2009.</td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="3%" align="left">(2)</td> <td valign="top" align="left">Amounts for 2009 include $198 million primarily related to equity awards that were granted in 2010 to employees who are retirement-eligible under the award terms. Amounts for fiscal 2008 and fiscal 2007 include $90 million and $345 million of accrued stock-based compensation expense primarily related to year-end equity awards granted in December 2008 and December 2007, respectively, to employees who are retirement-eligible under the award terms. Amounts for the one month ended December 31, 2008 include $2 million primarily related to equity awards that were granted in 2010 to employees who are retirement-eligible under the award terms.</td> </tr> </table>   The table above excludes stock-based compensation expense recorded in discontinued operations, which was approximately $11 million, $40 million, $30 million and $2 million for 2009, fiscal 2008, fiscal 2007 and the one month ended December 31, 2008, respectively. See Note 23 for additional information on discontinued operations.   The tax benefit for stock-based compensation expense related to deferred stock and stock options was $380 million, $557 million, $716 million and $23 million for 2009, fiscal 2008, fiscal 2007 and the one month ended December 31, 2008, respectively. The tax benefit for stock-based compensation expense included in discontinued operations in 2009, fiscal 2008, fiscal 2007 and the one month ended December 31, 2008 was approximately $3 million, $15 million, $12 million, and $1 million, respectively.   As of December 31, 2009 and December 31, 2008, the Company had approximately $762 million and $1,689 million, respectively, of unrecognized compensation cost related to unvested stock-based awards (excluding 2009 year-end awards granted in January 2010 to nonretirement-eligible employees, which will begin to be amortized in 2010). The unrecognized compensation cost relating to unvested stock-based awards expected to vest will primarily be recognized over the next two years.   In connection with awards under its equity-based compensation plans, the Company is authorized to issue shares of its common stock held in treasury or newly issued shares. As of December 31, 2009 and December 31, 2008, approximately 107 million and 82 million shares, respectively, were available for future grant under these plans.   The Company generally uses treasury shares to deliver shares to employees and has an ongoing repurchase authorization that includes repurchases in connection with awards granted under its equity-based compensation plans. Share repurchases by the Company are subject to regulatory approval. See Note 13 for additional information on the Company’s share repurchase program.   As a result of the DFS Spin-off effective June 30, 2007, all outstanding options to purchase the Company’s common stock held by employees of DFS were canceled and replaced with options to purchase DFS common stock. Outstanding options to purchase Morgan Stanley common stock held by directors and employees who remained with the Company after the DFS Spin-off were adjusted to preserve the intrinsic value of the awards immediately prior to the spin-off using an adjustment ratio based on the Morgan Stanley closing market stock price immediately prior to the spin-off date and the beginning market stock price at the date of the spin-off. Additional compensation cost recognized as a result of this modification was not material.   Similarly, restricted stock units awarded pursuant to equity incentive plans and held by employees of DFS were canceled and replaced with restricted units of DFS stock. Outstanding restricted stock units held by Morgan Stanley directors and employees who remained with the Company after the DFS Spin-off were adjusted by multiplying the number of shares by an adjustment ratio in order to account for the impact of the spin-off on the value of the Company’s shares at the time the spin-off was completed. No additional compensation cost was recognized as a result of this modification. Cash paid to the holders of deferred shares in lieu of fractional shares was not material.   Deferred Stock Awards.    The Company has made deferred stock awards pursuant to several equity-based compensation plans. The plans provide for the deferral of a portion of certain key employees’ discretionary compensation with awards made in the form of restricted common stock or in the right to receive unrestricted shares of common stock in the future (“restricted stock units”). Awards under these plans are generally subject to vesting over time contingent upon continued employment and to restrictions on sale, transfer or assignment until the end of a specified period, generally two to three years from date of grant. All or a portion of an award may be canceled if employment is terminated before the end of the relevant restriction period. All or a portion of a vested award also may be canceled in certain limited situations, including termination for cause during the relevant restriction period. Recipients of deferred stock awards generally have voting rights and receive dividend equivalents.   The following table sets forth activity relating to the Company’s vested and unvested restricted stock units (share data in millions):   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="54%"></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">2009</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">One Month Ended December 31, 2008</td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Number of Shares</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Weighted Average Grant Date Fair Value</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Number of Shares</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Weighted Average Grant Date Fair Value</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Restricted stock units at beginning of period </td> <td valign="bottom">  </td> <td valign="bottom" align="right">101</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">42.86</td> <td valign="bottom">  </td> <td valign="bottom" align="right">74</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">50.57</td> </tr> <tr> <td valign="top"> Granted </td> <td valign="bottom">  </td> <td valign="bottom" align="right">11</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">26.30</td> <td valign="bottom">  </td> <td valign="bottom" align="right">28</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">16.81</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Conversions to common stock </td> <td valign="bottom">  </td> <td valign="bottom" align="right">(5</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">48.88</td> <td valign="bottom">  </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> </tr> <tr> <td valign="top"> Canceled </td> <td valign="bottom">  </td> <td valign="bottom" align="right">(7</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">38.77</td> <td valign="bottom">  </td> <td valign="bottom" align="right">(1</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">47.61</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Restricted stock units at end of period(1) </td> <td valign="bottom">  </td> <td valign="bottom" align="right">100</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">40.88</td> <td valign="bottom">  </td> <td valign="bottom" align="right">101</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">42.86</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="3%" align="left">(1)</td> <td valign="top" align="left">As of December 31, 2009 and December 31, 2008, approximately 93 million and 92 million restricted stock units, respectively, with a weighted average grant date fair value of $41.56 and $43.36, respectively, were vested or expected to vest.</td> </tr> </table>   The weighted average price for restricted stock units granted during fiscal 2008 and fiscal 2007 was $48.71 and $66.68 (adjusted to reflect the impact of the DFS Spin-off), respectively. As of December 31, 2009 and December 31, 2008, the weighted-average remaining term until delivery for the Company’s outstanding restricted stock units was approximately 1.5 years and 2.2 years, respectively.   The total fair market value of restricted stock units converted to common stock during 2009, fiscal 2008, fiscal 2007 and the one month ended December 31, 2008 was $151 million, $3,209 million, $817 million and $8 million, respectively. The increased value of restricted stock units converting to common stock in fiscal 2008 compared to other fiscal years reflects the impact of a modification in fiscal 2008 to accelerate the conversion of certain restricted stock unit awards. Additional compensation cost recognized as a result of this modification was not material.   The following table sets forth activity relating to the Company’s unvested restricted stock units (share data in millions):   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="53%"></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">2009</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">One Month Ended December 31, 2008</td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Number of Shares</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Weighted Average Grant Date Fair Value</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Number of Shares</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Weighted Average Grant Date Fair Value</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Unvested restricted stock units at beginning of period </td> <td valign="bottom">  </td> <td valign="bottom" align="right">72</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">41.03</td> <td valign="bottom">  </td> <td valign="bottom" align="right">50</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">52.21</td> </tr> <tr> <td valign="top"> Granted </td> <td valign="bottom">  </td> <td valign="bottom" align="right">11</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">26.30</td> <td valign="bottom">  </td> <td valign="bottom" align="right">28</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">16.81</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Vested </td> <td valign="bottom">  </td> <td valign="bottom" align="right">(14</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">44.57</td> <td valign="bottom">  </td> <td valign="bottom" align="right">(5</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">20.49</td> </tr> <tr> <td valign="top"> Canceled </td> <td valign="bottom">  </td> <td valign="bottom" align="right">(7</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">38.64</td> <td valign="bottom">  </td> <td valign="bottom" align="right">(1</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">47.61</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Unvested restricted stock units at end of period(1) </td> <td valign="bottom">  </td> <td valign="bottom" align="right">62</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">37.78</td> <td valign="bottom">  </td> <td valign="bottom" align="right">72</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">41.03</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="3%" align="left">(1)</td> <td valign="top" align="left">Unvested restricted stock units represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligible requirements. As of December 31, 2009 and December 31, 2008, approximately 55 million and 63 million, respectively, unvested restricted stock units, with a weighted average grant date fair value of $38.48 and $41.52, respectively, were expected to vest.</td> </tr> </table>   Stock Option Awards.    The Company has granted stock option awards pursuant to several equity-based compensation plans. The plans provide for the deferral of a portion of certain key employees’ discretionary compensation with awards made in the form of stock options generally having an exercise price not less than the fair value of the Company’s common stock on the date of grant. Such stock option awards generally become exercisable over a three-year period and expire ten years from the date of grant, subject to accelerated expiration upon termination of employment. Stock option awards have vesting, restriction and cancellation provisions that are generally similar to those in deferred stock awards.   The weighted average fair value of options granted during fiscal 2007 was $18.55 (adjusted to reflect the impact of the DFS Spin-off), utilizing the following weighted average assumptions. No options were granted in 2009, fiscal 2008 or the one month ended December 31, 2008.   <table border="0" cellspacing="0" cellpadding="0" width="92%" align="center"> <tr> <td width="88%"></td> <td valign="bottom" width="10%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Fiscal 2007</td> <td valign="bottom"> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Risk-free interest rate </td> <td valign="bottom">  </td> <td valign="bottom" align="right">4.4</td> <td valign="bottom" nowrap="nowrap">% </td> </tr> <tr> <td valign="top"> Expected option life in years </td> <td valign="bottom">  </td> <td valign="bottom" align="right">6.0</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Expected stock price volatility </td> <td valign="bottom">  </td> <td valign="bottom" align="right">23.8</td> <td valign="bottom" nowrap="nowrap">% </td> </tr> <tr> <td valign="top"> Expected dividend yield </td> <td valign="bottom">  </td> <td valign="bottom" align="right">1.4</td> <td valign="bottom" nowrap="nowrap">% </td> </tr> </table>   The Company’s expected option life has been determined based upon historical experience. The expected stock price volatility assumption was determined using the implied volatility of exchange-traded options, in accordance with accounting guidance for share-based payments.   The following table sets forth activity relating to the Company’s stock options (option data in millions):   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="67%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">2009</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">One Month Ended December 31, 2008</td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Number of Options</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Weighted Average Exercise Price</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Number of Options</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Weighted Average Exercise Price</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Options outstanding at beginning of period </td> <td valign="bottom">  </td> <td valign="bottom" align="right">99</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">49.90</td> <td valign="bottom">  </td> <td valign="bottom" align="right">100</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">49.88</td> </tr> <tr> <td valign="top"> Canceled </td> <td valign="bottom">  </td> <td valign="bottom" align="right">(17</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">43.24</td> <td valign="bottom">  </td> <td valign="bottom" align="right">(1</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">47.15</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Options outstanding at end of period(1) </td> <td valign="bottom">  </td> <td valign="bottom" align="right">82</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">51.29</td> <td valign="bottom">  </td> <td valign="bottom" align="right">99</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">49.90</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Options exercisable at end of period </td> <td valign="bottom">  </td> <td valign="bottom" align="right">82</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">51.24</td> <td valign="bottom">  </td> <td valign="bottom" align="right">86</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">47.57</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="3%" align="left">(1)</td> <td valign="top" align="left">As of December 31, 2009 and December 31, 2008, 82 million and 98 million, awards, respectively, with a weighted average exercise price of $51.28 and $49.66, respectively, were vested or expected to vest.</td> </tr> </table>   The total intrinsic value of stock options exercised during fiscal 2008 and fiscal 2007 was $211 million and $707 million, respectively. There were no stock options exercised during 2009 or the one month ended December 31, 2008.   As of December 31, 2009, the intrinsic value of in-the-money exercisable stock options was not material. As of December 31, 2008, there were no exercisable in-the-money stock options.   The following tables present information relating to the Company’s stock options outstanding as of December 31, 2009 and December 31, 2008 (number of options outstanding data in millions):   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="30%"></td> <td valign="bottom" width="8%"></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> At December 31, 2009 </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center">Options Outstanding</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center">Options Exercisable</td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> Range of Exercise Prices </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Number Outstanding</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Weighted Average Exercise Price</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Average Remaining Life (Years)</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Number Exercisable</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Weighted Average Exercise Price</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Average Remaining Life (Years)</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> $22.00 – $39.99 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">11</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">36.22</td> <td valign="bottom">  </td> <td valign="bottom" align="right">3.0</td> <td valign="bottom">  </td> <td valign="bottom" align="right">11</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">36.22</td> <td valign="bottom">  </td> <td valign="bottom" align="right">3.0</td> </tr> <tr> <td valign="top"> $40.00 – $49.99 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">34</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">47.25</td> <td valign="bottom">  </td> <td valign="bottom" align="right">3.3</td> <td valign="bottom">  </td> <td valign="bottom" align="right">34</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">47.25</td> <td valign="bottom">  </td> <td valign="bottom" align="right">3.3</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> $50.00 – $59.99 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">20</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">53.79</td> <td valign="bottom">  </td> <td valign="bottom" align="right">0.8</td> <td valign="bottom">  </td> <td valign="bottom" align="right">20</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">53.79</td> <td valign="bottom">  </td> <td valign="bottom" align="right">0.8</td> </tr> <tr> <td valign="top"> $60.00 – $69.99 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">16</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">66.65</td> <td valign="bottom">  </td> <td valign="bottom" align="right">5.7</td> <td valign="bottom">  </td> <td valign="bottom" align="right">16</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">66.65</td> <td valign="bottom">  </td> <td valign="bottom" align="right">5.7</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> $70.00 – $91.99 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">1</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">80.25</td> <td valign="bottom">  </td> <td valign="bottom" align="right">1.1</td> <td valign="bottom">  </td> <td valign="bottom" align="right">1</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">81.04</td> <td valign="bottom">  </td> <td valign="bottom" align="right">0.6</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Total </td> <td valign="bottom">  </td> <td valign="bottom" align="right">82</td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom" align="right">82</td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> </tr> </table>   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="30%"></td> <td valign="bottom" width="8%"></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> At December 31, 2008 </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center">Options Outstanding</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center">Options Exercisable</td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> Range of Exercise Prices </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Number Outstanding</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Weighted Average Exercise Price</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Average Remaining Life (Years)</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Number Exercisable</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Weighted Average Exercise Price</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Average Remaining Life (Years)</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> $22.00 – $39.99 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">19</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">34.21</td> <td valign="bottom">  </td> <td valign="bottom" align="right">2.5</td> <td valign="bottom">  </td> <td valign="bottom" align="right">19</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">34.21</td> <td valign="bottom">  </td> <td valign="bottom" align="right">2.5</td> </tr> <tr> <td valign="top"> $40.00 – $49.99 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">38</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">47.17</td> <td valign="bottom">  </td> <td valign="bottom" align="right">4.1</td> <td valign="bottom">  </td> <td valign="bottom" align="right">38</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">47.21</td> <td valign="bottom">  </td> <td valign="bottom" align="right">4.1</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> $50.00 – $59.99 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">23</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">53.65</td> <td valign="bottom">  </td> <td valign="bottom" align="right">1.7</td> <td valign="bottom">  </td> <td valign="bottom" align="right">23</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">53.65</td> <td valign="bottom">  </td> <td valign="bottom" align="right">1.7</td> </tr> <tr> <td valign="top"> $60.00 – $69.99 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">18</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">66.60</td> <td valign="bottom">  </td> <td valign="bottom" align="right">6.7</td> <td valign="bottom">  </td> <td valign="bottom" align="right">5</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">66.31</td> <td valign="bottom">  </td> <td valign="bottom" align="right">3.9</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> $70.00 – $91.99 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">1</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">80.47</td> <td valign="bottom">  </td> <td valign="bottom" align="right">1.7</td> <td valign="bottom">  </td> <td valign="bottom" align="right">1</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">81.06</td> <td valign="bottom">  </td> <td valign="bottom" align="right">1.2</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Total </td> <td valign="bottom">  </td> <td valign="bottom" align="right">99</td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom" align="right">86</td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> </tr> </table> </div> 18.    Employee Stock-Based Compensation Plans.   The accounting guidance for stock-based compensation requires measurement of false false No definition available. No authoritative reference available. false false 1 1 false UnKnown UnKnown UnKnown false true