6 5 - RR DONNELLEY FINANCIAL - External Home Login
6 5 - RR DONNELLEY FINANCIAL - External Home Login
6 5 - RR DONNELLEY FINANCIAL - External Home Login
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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES<br />
NOTES TO CONSOLIDATED <strong>FINANCIAL</strong> STATEMENTS – (Continued)<br />
The following table provides information related to stock option activity for 2010, 2009 and 2008:<br />
Number of<br />
Shares<br />
Underlying<br />
Options<br />
Weighted<br />
Average<br />
Exercise Price<br />
Per Share<br />
Weighted<br />
Average<br />
Contract<br />
Life in Years<br />
Aggregate<br />
Intrinsic<br />
Value (a)<br />
(in thousands) ($ in millions)<br />
Outstanding at January 1, 2010 ......... 2,283 $ 8.36<br />
Exercised ....................... (475) 6.29 $ 8<br />
Forfeited / Canceled ............... — —<br />
Outstanding and exercisable at<br />
December 31, 2010 ................. 1,808 $ 8.90 2.03 $ 31<br />
Shares authorized for future grants ...... —<br />
Outstanding at January 1, 2009 ......... 2,802 $ 8.13<br />
Exercised ....................... (508) 7.12 $ 8<br />
Forfeited / Canceled ............... (11) 6.47<br />
Outstanding and exercisable at<br />
December 31, 2009 ................. 2,283 $ 8.36 2.75 $ 40<br />
Shares authorized for future grants ...... —<br />
Outstanding at January 1, 2008 ......... 4,445 $ 7.55<br />
Exercised ....................... (1,639) 6.54 $ 66<br />
Forfeited / Canceled ............... (4) 15.26<br />
Outstanding and exercisable at<br />
December 31, 2008 ................. 2,802 $ 8.13 3.59 $ 23<br />
Shares authorized for future grants ...... 5,763<br />
(a) The intrinsic value of a stock option is the amount by which the current market value or the market value<br />
upon exercise of the underlying stock exceeds the exercise price of the option.<br />
As of December 31, 2010, there was no remaining unrecognized compensation cost related to unvested<br />
stock options.<br />
During the years ended December 31, 2010, 2009 and 2008, we recognized excess tax benefits related to<br />
stock options of $2 million, $1 million and $15 million, respectively, which were recorded as adjustments to<br />
additional paid-in capital and deferred income taxes with respect to such benefits.<br />
The following table summarizes information about stock options outstanding and exercisable at<br />
December 31, 2010:<br />
Range of<br />
Exercise Prices<br />
Number<br />
of Options<br />
Weighted-Avg.<br />
Remaining<br />
Contractual Life<br />
in Years<br />
Weighted-Avg.<br />
Exercise Price<br />
$ 5.20 – $ 5.20<br />
(in thousands)<br />
226 1.56 $ 5.20<br />
5.35 – 5.85 32 1.26 5.47<br />
6.11 – 6.11 358 0.82 6.11<br />
6.40 – 7.74 64 1.25 6.87<br />
7.80 – 7.80 325 2.02 7.80<br />
7.86 – 10.01 111 1.82 8.58<br />
10.08 – 10.08 357 2.48 10.08<br />
10.10 – 15.06 197 3.05 12.82<br />
15.47 – 16.08 88 3.90 15.73<br />
22.49 – 22.49 50 4.25 22.49<br />
$ 5.20 – $ 22.49 1,808 2.03 $ 8.90<br />
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