NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (thousands of dollars unless otherwise indicated) of grant. No options may be exercised more than ten years from the date of the grant. A summary of the Company’s non-qualified and incentive stock option activity and related information for the years ended December 31, 2004, 2003 and 2002 is shown in the following table: generally become exercisable to the extent of one-third of the optioned shares for each full year following the date of grant and generally expire ten years after the date of grant. The number of options and period of service required before the options may be exercised  are determined by the Board of Directors at the time  Exercise prices for optioned shares outstanding as of December 31, 2004 ranged from $16.34 to $41.73. A summary of these options by range of exercise prices is as follows: 2004 2003 2002 Optioned Shares Weighted- Average Exercise Price Optioned Shares Weighted- Average Exercise Price Optioned Shares Weighted- Average Exercise Price Outstanding beginning of year ............. 15,099,131  $25.27  15,178,222  $23.90  14,129,176  $23.19 Granted................................................ 2,065,900  41.40  2,431,500  30.96  3,064,900  25.47 Exercised.............................................. (3,702,377) 23.90  (2,171,839) 21.86  (1,791,675) 20.94 Forfeited............................................... (155,237) 27.25 (127,604) 24.50  (111,901) 22.07 Expired................................................. (20,584) 24.01  (211,148) 27.50  (112,278) 26.98 Outstanding end of year....................... 13,286,833  $28.14  15,099,131  $25.27  15,178,222  $23.90 Exercisable at end of year .................... 8,691,851  $24.78  9,716,381  $23.91  9,258,221  $23.69  Weighted-average fair value of options granted during year ............. $6.24  $5.76  $5.48  Reserved for future grants.................... 4,867,314  7,070,782  979,055  Outstanding Exercisable Range of Exercise Prices Optioned Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (years) Optioned Shares Weighted- Average Exercise Price $16.34 - $24.50 ...... 4,135,516 $21.98  5.7 4,102,475 $21.96  $25.06 - $35.34 ...... 7,145,717 27.92  6.6 4,589,376 27.29 $38.53 - $41.73 ...... 2,005,600 41.64  9.8 13,286,833 $28.14  6.8 8,691,851 $24.78  64