Medtronic 2014 Annual Report Download - page 113

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Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
Stock Options The following table summarizes all stock option activity, including activity from options assumed or issued as
a result of acquisitions, during fiscal years 2014, 2013, and 2012:
Fiscal Year
2014 2013 2012
Options (in
thousands)
Wtd. Avg.
Exercise
Price
Options (in
thousands)
Wtd. Avg.
Exercise
Price
Options (in
thousands)
Wtd. Avg.
Exercise
Price
Beginning balance 62,020 $ 44.98 74,590 $ 44.80 84,652 $ 45.23
Granted 2,983 55.36 4,437 39.54 4,634 34.93
Exercised (27,527) 46.26 (6,096) 37.73 (1,218) 34.95
Canceled (1,899) 46.44 (10,911) 45.57 (13,478) 44.98
Outstanding at year-end 35,577 $ 44.78 62,020 $ 44.98 74,590 $ 44.80
Exercisable at year-end 26,997 $ 45.22 50,908 $ 46.65 60,833 $ 46.73
For options outstanding and exercisable at April 25, 2014, the weighted average remaining contractual life was 4.53 years and
3.39 years, respectively. The total intrinsic value, calculated as the closing stock price at year-end less the option exercise price,
of options exercised during fiscal years 2014, 2013, and 2012 was $249 million, $39 million, and $5 million, respectively. For
options outstanding and exercisable at April 25, 2014, the total intrinsic value of in-the-money options was $477 million and
$351 million, respectively. The Company issues new shares when stock option awards are exercised. Cash received from the
exercise of stock options for the fiscal year ended April 25, 2014 was $1.273 billion. The Company’s tax benefit related to the
exercise of stock options for fiscal year 2014 was $78 million. Unrecognized compensation expense related to outstanding stock
options as of April 25, 2014 was $40 million and is expected to be recognized over a weighted average period of 2.5 years and
will be adjusted for any future changes in estimated forfeitures.
Restricted Stock Awards The following table summarizes restricted stock award activity during fiscal years 2014, 2013, and
2012:
Fiscal Year
2014 2013 2012
Awards (in
thousands)
Wtd. Avg.
Grant
Price
Awards (in
thousands)
Wtd. Avg.
Grant
Price
Awards (in
thousands)
Wtd. Avg.
Grant
Price
Nonvested, beginning
balance 10,058 $ 38.97 9,980 $ 37.80 9,207 $ 40.42
Granted 2,519 55.62 3,135 39.53 3,785 35.60
Vested (2,210) 35.76 (2,445) 35.58 (2,194) 44.74
Forfeited (809) 39.41 (612) 36.34 (818) 38.46
Nonvested at year-end 9,558 $ 44.06 10,058 $ 38.97 9,980 $ 37.80
Unrecognized compensation expense related to restricted stock awards as of April 25, 2014 was $170 million and is expected to
be recognized over a weighted average period of 3.4 years and will be adjusted for any future changes in estimated forfeitures.
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