Sysco 2010 Annual Report Download - page 83
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Please find page 83 of the 2010 Sysco 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.The following summary presents information regarding outstanding options as of July 3, 2010 and changes during the fiscal year then ended
with regard to options under all stock incentive plans:
Shares
Under
Option
Weighted
Average Exercise
Price Per Share
Weighted Average
Remaining
Contractual Term
(in years)
Aggregate
Intrinsic Value
(In thousands)
Outstanding as of June 27, 2009 ........................ 68,431,512 $ 29.72
Granted . . . ...................................... 8,494,200 27.41
Exercised . . ...................................... (2,715,794) 22.09
Forfeited . . ...................................... (945,511) 30.91
Expired.......................................... (429,010) 29.38
Outstanding as of July 3, 2010 ......................... 72,835,397 $ 29.72 3.06 $ 47,345
Vested or expected to vest as of July 3, 2010 ............... 72,098,920 $ 29.74 3.04 $ 46,304
Exercisable as of July 3, 2010 .......................... 51,267,445 $ 30.26 2.17 $ 19,508
The total number of employee options granted was 8,494,200, 8,089,750 and 6,438,968 in fiscal years 2010, 2009 and 2008, respectively.
During fiscal 2010, 1,451,500 options were granted to 12 executive officers and 7,042,700 options were granted to approximately 1,600 other key
employees. During fiscal 2009, 1,395,000 options were granted to 12 executive officers and 6,694,750 options were granted to approximately 1,700
other key employees. During fiscal 2008, 699,000 options were granted to 12 executive officers and 5,739,968 options were granted to
approximately 1,500 other key employees.
The weighted average grant-date fair value of options granted in fiscal 2010, 2009 and 2008 was $4.53, $5.88 and $6.50, respectively. The
total intrinsic value of options exercised during fiscal 2010, 2009 and 2008 was $16.3 million, $24.4 million and $33.6 million, respectively.
Restricted Stock Units
In fiscal 2010, 652,300 restricted stock units were granted to employees that will vest ratably over a three-year period. The majority of these
restricted stock units were granted with dividend equivalents.The fair value of each restricted stock unit award granted with a dividend equivalent is
based on the company’s stock price as of the date of grant. For restricted stock unit awards granted without dividend equivalents, the fair value was
reduced by the present value of expected dividends during the vesting period.The weighted average grant-date fair value per share of restricted stock
units granted during the fiscal 2010 was $27.24.
Restricted Stock
In fiscal 2009, 75,822 shares of restricted stock were granted to an executive officer. The fair value of these shares was $23.74 per share, which
was based on the stock price on the grant date.These shares will vest ratably over a three-year period. In fiscal 2010, this executive officer announced
his retirement, and 37,911 of the shares were forfeited according to the terms of the agreement. The remaining shares have vested or will vest
according to the terms of the agreement as amended in connection with the executive officer’s retirement.
Non-Employee Director Stock Grants
The 2009 Non-Employee Directors Stock Plan, as well as previous plans, provides for the issuance of restricted stock to current non-employee
directors. During fiscal 2010, 2009 and 2008, 58,310, 65,631 and 52,430 shares, respectively, of restricted stock were granted to non-employee
directors.These shares will vest ratably over a three-year period.The weighted average grant-date fair value of the shares granted during fiscal 2010,
2009 and 2008 was $27.44, $24.99 and $33.09, respectively.
Under the 2009 Non-Employee Directors Stock Plan, non-employee directors may elect to receive up to 100% of their annual directors’ fees in
Sysco common stock on either an annual or deferred basis. Previous plans allowed for the election to receive up to 50% of annual directors’ fees in
Sysco common stock. Sysco provides a matching grant of 50% of the number of shares received for the stock election subject to certain limitations.
As a result of such elections, a total of 23,111, 21,966 and 13,051 shares with a weighted-average grant date fair value of $24.42, $27.49 and $33.33
per share were issued in fiscal 2010, 2009 and 2008, respectively.
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