2K Sports 2003 Annual Report Download - page 47

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45
Subject to the provisions of the plans, the Board of Directors or
any Committee appointed by the Board of Directors has the authority
to determine the individuals to whom the stock options are to be
granted, the number of shares to be covered by each option, the
option price, the type of option, the option period, restrictions, if any,
on the exercise of the option, the terms for the payment of the option
price and other terms and conditions. As of April 30, 2002, there
were no options available for grant under the 1997 Plan.
As of October 31, 2003 and 2002, the plans had outstanding
stock options for an aggregate of 3,066,000 and 2,764,000 shares of
the Company’s common stock, respectively, vesting at various times
from 1998 to 2006 and expiring at various times from 2002 to 2007.
Options granted generally vest over a period of three to five years.
Non-Plan Stock Options
As of October 31, 2003 and 2002, there are non-plan stock
options outstanding for an aggregate of 1,503,000 and 2,931,000
shares of the Company’s common stock, respectively, vesting from
1999 to 2006 and expiring at various times from 2003 to 2007.
For those options with exercise prices less than fair value of
the underlying shares at the measurement date, the difference is
recorded as deferred compensation and is amortized over the
vesting period. Compensation expense for the years ended October
31, 2003, 2002, and 2001 was approximately $26, $1,976 and $5,
respectively.
The following table summarizes the activity in options under the plans, inclusive of non-plan options:
Shares Weighted Average
(in thousands) Exercise Price
Options outstanding—November 1, 2000 4,199 $8.72
Granted—exercise price equal to fair value 3,351 $9.94
Granted—exercise price less than fair value 500 $13.91
Exercised (3,327) $9.00
Forfeited (244) $10.09
Options outstanding—October 31, 2001 4,479 $9.93
Granted—exercise price equal to fair value 3,950 $16.40
Granted—exercise price less than fair value 30 $0.01
Exercised (2,494) $10.43
Forfeited (270) $12.31
Options outstanding—October 31, 2002 5,695 $13.96
Granted—exercise price equal to fair value 2,442 $25.26
Exercised (3,438) $13.53
Forfeited (130) $17.13
Options outstanding—October 31, 2003 4,569 $20.23
At October 31, 2003 and 2002, the number of options exercisable are 1,389,000 and 3,014,000, respectively, and their related weighted
average exercise prices are $15.09 and $12.56, respectively.
The following summarizes information about stock options outstanding and exercisable at October 31, 2003:
Average
Weighted Remaining
Shares Average Contractual
Range of Exercise Prices (in thousands) Exercise Price Life (years)
$ 5.50—$13.91 986 $10.43 2.42
$14.86—$19.55 1,365 $18.37 3.61
$20.10—$25.31 963 $21.98 4.33
$25.78—$35.71 1,255 $28.63 4.20
Options outstanding—October 31, 2003 4,569 $20.23 3.67
$ 5.50—$13.91 675 $10.42 2.16
$14.86—$19.55 523 $17.98 3.53
$20.10—$25.31 114 $21.88 4.10
$25.78—$35.71 77 $26.43 3.98
Options exercisable—October 31, 2003 1,389 $15.09 2.93