CarMax 2001 Annual Report Download - page 83

(D) RESTRICTED STOCK: The Company has issued restricted
stock under the provisions of the 1994 Stock Incentive Plan
whereby management and key employees are granted restricted
shares of CarMax Group Common Stock. Shares are awarded in
the name of the employee, who has all the rights of a share-
holder, subject to certain restrictions or forfeitures. Restrictions
on the awards generally expire four to five years from the date of
grant. The market value at the date of grant of these shares has
been recorded as unearned compensation and is a component of
Group equity. Unearned compensation is expensed over the
restriction periods. In fiscal 2001, a total of $153,500 was
charged to operations ($447,200 in fiscal 2000 and $426,600 in
fiscal 1999). As of February 28, 2001, 56,667 restricted shares
were outstanding.
(E) EMPLOYEE STOCK PURCHASE PLAN: The Company has
Employee Stock Purchase Plans for all employees meeting certain
eligibility criteria. The CarMax Group Plan allows eligible employ-
ees to purchase shares of CarMax Group Common Stock, subject
to certain limitations. For each $1.00 contributed by employees
under the Plan, the Company matches $0.15. Purchases are limited
to 10 percent of an employee’s eligible compensation, up to a
maximum of $7,500 per year. At February 28, 2001, a total of
581,599 shares remained available under the CarMax Group Plan.
During fiscal 2001, 477,094 shares were issued to or purchased on
the open market on behalf of employees (580,000 in fiscal 2000
and 268,532 in fiscal 1999). The average price per share purchased
under the Plan was $4.18 in fiscal 2001, $3.68 in fiscal 2000 and
$7.56 in fiscal 1999. The Company match or purchase price dis-
count for the CarMax Group totaled $247,000 in fiscal 2001,
$221,500 in fiscal 2000 and $268,100 in fiscal 1999.
(F) STOCK INCENTIVE PLANS: Under the Company’s stock incen-
tive plans, nonqualified stock options may be granted to man-
agement, key employees and outside directors to purchase shares
of CarMax Group Common Stock. The exercise price for non-
qualified options is equal to, or greater than, the market value at
the date of grant. Options generally are exercisable over various
periods ranging from one to seven years from the date of grant.
A summary of the status of the CarMax Group’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 outstanding as of
February 28, 2001.
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CIRCUIT CITY STORES, INC. 2001 ANNUAL REPORT
TABLE 1 2001 2000 1999
Weighted Average Weighted Average Weighted Average
(Shares in thousands) Shares Exercise Price Shares Exercise Price Shares Exercise Price
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
$ 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 to 16.31 ................................................ 424 3.4 11.55 300 11.91
Total.................................................................... 4,107 3.5 $ 3.16 1,943 $ 2.94