Walmart 2007 Annual Report Download - page 55

Wal-Mart 2007 Annual Report 53
A summary of the stock option award activity for  scal 2007 is presented below:
Weighted-Average Weighted-Average Aggregate
Options Shares
Exercise Price Remaining Life in Years Intrinsic Value
Outstanding at January 31, 2006 71,911,000 $ 49.69
Granted 12,451,000 43.74
Exercised (5,015,000) 26.31
Forfeited or expired (7,971,000) 47.36
Outstanding at January 31, 2007 71,376,000 $48.65 6.6 $130,266,000
Exercisable at January 31, 2007 36,917,000 $48.82 5.1 $ 82,447,000
Notes to Consolidated Financial Statements
As of January 31, 2007, there was $310 million of total unrecognized compensation cost related to stock options granted under the Plan, which is
expected to be recognized over a weighted-average period of 3.0 years. The total fair value of options vested during the  scal years ended
January 31, 2007, 2006, and 2005, was $160 million, $197 million and $161 million, respectively.
The weighted-average grant-date fair value of options granted during the  scal years ended January 31, 2007, 2006 and 2005, was $9.20, $11.82
and $11.39, respectively. The total intrinsic value of options exercised during the years ended January 31, 2007, 2006 and 2005, was $103 million,
$125 million and $235 million, respectively.
Under the Plan, the Company grants various types of awards of restricted (non-vested) stock to certain associates. These grants include awards
for shares that vest based on the passage of time, performance criteria, or both. Vesting periods vary. The restricted stock awards may be settled
in stock, or deferred as stock or cash, based upon the associate’s election. Consequently, these awards are classi ed as liabilities in the accom-
panying balance sheets unless the associate has elected for the award to be settled or deferred in stock. The restricted stock rights awards are
settled in stock.
During  scal 2005, the Company began issuing performance share awards under the Plan which vesting is based on the passage of time and
achievement of performance criteria. These awards accrue to the associate based on the extent to which revenue growth and return on
investment goals are attained or exceeded over a one- to three-year period. Based on the extent to which the targets are achieved, vested shares
may range from 0% to 150% of the original award amount. Because the performance shares may be settled in stock or cash, the performance
shares are accounted for as liabilities in the accompanying balance sheets.
The fair value of the restricted stock liabilities is remeasured each reporting period. The total liability for restricted stock and performance share
awards at January 31, 2007, was $153 million.
A summary of the Company’s non-vested restricted stock and performance share award activity for fiscal 2007 is presented below and
represents the maximum number of shares that could be earned or vested under the Plan:
Weighted-Average
Non-Vested Restricted Stock and Performance Share Awards Shares Grant-Date Fair Value
Restricted stock and performance share awards at January 31, 2006 7,899,000 $ 48.28
Granted 8,022,000 45.95
Vested (833,000) 49.05
Forfeited (1,042,000) 48.95
Restricted stock and performance share awards at January 31, 2007 14,046,000 $46.85
As of January 31, 2007, there was $360 million of total unrecognized compensation cost related to restricted stock and performance share
awards granted under the Plan, which is expected to be recognized over a weighted-average period of 3.9 years. The total fair value of shares
vested during the  scal years ended January 31, 2007, 2006 and 2005, was $38 million, $20 million and $34 million, respectively.