Barnes and Noble 2002 Annual Report Download - page 45

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The following table summarizes information as of February 1, 2003 concerning outstanding and exercisable options:
Options Outstanding Options Exercisable
Weighted- Weighted- Weighted-
Number Average Average Number Average
Outstanding Remaining Exercise Exercisable Exercise
Range of Exercise Prices (000s) Contractual Life Price (000s) Price
$3.59 337 0.40 $ 3.59 337 $ 3.59
$10.00 - $ 16.75 5,374 2.22 $ 13.18 4,475 $ 12.46
$17.13 - $ 24.25 5,440 7.71 $ 20.92 1,942 $ 21.19
$26.50 - $ 34.75 1,417 6.32 $ 30.52 793 $ 30.96
$3.59 - $ 34.75 12,568 5.01 $ 18.22 7,547 $ 16.25
[NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS continued ]
44
2002 Annual ReportBarnes & Noble, Inc.
exercise certain stock options held by Leonard Riggio
covering 2,000,000 shares of the Company’s common
stock. Upon any such exercise, Stephen Riggio would be
entitled to the value of the underlying common stock
to the extent it exceeds certain specified values, none of
which is less than the quoted market price of the stock
at the date of the Agreement. The Agreement was entered
into in connection with Stephen Riggio’s succeeding
Leonard Riggio as the Company’s Chief Executive Officer.
The options have been accounted for under APB 25.
The weighted-average fair value of the options granted
during fiscal 2002, 2001 and 2000 were estimated at
$8.96, $10.13 and $7.86, respectively, using the Black-
Scholes option-pricing model with the following
assumptions:
Fiscal Year 2002 2001 2000
Volatility 40% 35% 35%
Risk-free interest rate 3.51% 4.86% 6.50%
Expected life 6 years 6 years 6 years
A summary of the status of the Company’s BKS stock
options is presented below:
Weighted-Average
(Thousands of shares) Shares Exercise Price
Balance, January 29, 2000 11,143 $ 17.27
Granted 2,675 17.04
Exercised ( 995 ) 13.64
Forfeited ( 807 ) 22.76
Balance, February 3, 2001 12,016 17.15
Granted 2,204 18.24
Exercised ( 2,163 ) 21.81
Forfeited ( 362 ) 23.76
Balance, February 2, 2002 11,695 18.04
Granted 2,182 20.09
Exercised ( 385 ) 18.52
Forfeited ( 924 ) 20.22
Balance, February 1, 2003 12,568 $ 18.22