CarMax 2001 Annual Report Download - page 44

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41
CIRCUIT CITY STORES, INC. 2001 ANNUAL REPORT
Circuit City Stores, Inc.
TABLE 1 2001 2000 1999
Weighted Average Weighted Average Weighted Average
(Shares in thousands) Shares Exercise Price Shares Exercise Price Shares Exercise Price
Circuit City Group:
Outstanding at beginning of year................ 7,380 $25.07 8,894 $18.25 9,988 $16.00
Granted ............................................................ 4,280 34.80 1,564 40.75 1,080 21.17
Exercised.......................................................... (1,526) 23.64 (2,864) 12.65 (2,008) 8.77
Cancelled.......................................................... (1,414) 34.25 (214) 22.06 (166) 16.80
Outstanding at end of year........................... 8,720 $28.60 7,380 $25.07 8,894 $18.25
Options exercisable at end of year .............. 3,158 $21.86 1,258 $13.89 2,966 $12.02
CarMax Group:
Outstanding at beginning of year................ 3,324 $ 3.87 4,380 $ 1.77 4,822 $ 1.49
Granted ............................................................ 1,281 1.70 1,132 5.89 205 8.63
Exercised.......................................................... (56) 0.22 (2,027) 0.22 (543) 0.22
Cancelled.......................................................... (442) 4.67 (161) 6.94 (104) 10.54
Outstanding at end of year........................... 4,107 $ 3.16 3,324 $ 3.87 4,380 $ 1.77
Options exercisable at end of year .............. 1,943 $ 2.94 1,203 $ 2.54 1,566 $ 0.96
TABLE 2 Options Outstanding Options Exercisable
Weighted Average
(Shares in thousands) Number Remaining Weighted Average Number Weighted Average
Range of Exercise Prices Outstanding Contractual Life Exercise Price Exercisable Exercise Price
Circuit City Group:
$ 9.09 to 14.75 ............................................ 1,344 3.8 $14.10 879 $13.93
15.18 to 18.00............................................. 1,067 3.0 17.24 876 17.23
18.43 to 25.28............................................. 864 4.1 21.11 212 20.78
29.50............................................................. 1,000 1.1 29.50 1,000 29.50
34.84 to 35.21 ............................................. 3,038 7.2 35.21 — —
35.22 to 47.53............................................. 1,407 5.4 40.72 191 40.81
Total.................................................................. 8,720 4.9 $28.60 3,158 $21.86
CarMax Group:
$ 0.22............................................................. 1,578 1.0 $ 0.22 1,338 $ 0.22
1.63............................................................. 1,094 6.0 1.63 — —
3.22 to 6.25.............................................. 1,011 4.7 5.89 305 6.07
8.68 to16.31.............................................. 424 3.4 11.55 300 11.91
Total.................................................................. 4,107 3.5 $ 3.16 1,943 $ 2.94
A summary of the status of the Company’s stock options
and changes during the years ended February 28, 2001,
February 29, 2000, and February 28, 1999, are shown in Table 1.
Table 2 summarizes information about stock options outstand-
ing as of February 28, 2001.
The Company applies APB Opinion No. 25 and related inter-
pretations in accounting for its stock option plans. Accordingly,
no compensation cost has been recognized. Had compensation
cost been determined based on the fair value at the grant date
consistent with the methods of SFAS No. 123, the net earnings
and net earnings per share attributed to the Circuit City Group and
the net earnings (loss) and net earnings (loss) per share attributed
to the CarMax Group would have changed to the pro forma
amounts indicated in the following table. In accordance with the
transition provisions of SFAS No. 123, the pro forma amounts
reflect options with grant dates subsequent to March 1, 1995.
Therefore, the full impact of calculating compensation cost for
stock options under SFAS No. 123 is not reflected in the pro
forma net earnings (loss) amounts presented because compensa-
tion cost is reflected over the options’ vesting periods and com-
pensation cost of options granted prior to March 1, 1995, is not
considered. The pro forma effect on fiscal year 2001 may not be
representative of the pro forma effects on net earnings (loss) for
future years.