DIRECTV 2004 Annual Report Download - page 102

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (continued)
Changes in the status of outstanding options were as follows:
Shares Under
Option
Weighted-Average
Exercise Price
Outstanding at December 31, 2001
97,321,358
$
23.08
Granted
290,000
15.71
Exercised
(590,855
)
13.44
Terminated
(1,939,671
)
20.99
Outstanding at December 31, 2002
95,080,832
23.16
Granted
25,000
16.35
Exercised
(1,780,076
)
10.15
Terminated
(2,164,436
)
28.73
Outstanding at December 31, 2003
91,161,320
23.28
Granted
1,883,764
18.80
Exercised
(2,139,782
)
10.72
Terminated
(1,971,186
)
26.45
Outstanding at December 31, 2004
88,934,116
23.42
The following table summarizes information about stock options outstanding at December 31, 2004:
Options Outstanding
Options Exercisable
Range of
Exercise Prices
Number
Outstanding
Weighted-
Average
Remaining
Contractual
Life (years)
Weighted-
Average
Exercise
Price
Number
Exercisable
Weighted-
Average
Exercise
Price
$3.00 to $8.99
619,043
0.3
$
7.69
619,043
$
7.69
9.00 to 16.99
26,978,822
3.4
12.85
26,962,155
12.85
17.00 to 24.99
22,558,674
5.7
19.67
22,522,145
19.67
25.00 to 32.99
16,383,954
6.0
27.78
16,383,954
27.78
33.00 to 41.99
22,393,623
5.3
37.17
22,393,623
37.17
88,934,116
4.9
23.42
88,880,920
23.42
Of the options outstanding at December 31, 2003 and 2002, there were 87.6 million and 54.7 million options exercisable at
weighted average exercise prices of $23.40 and $19.60, respectively.
The following table presents the estimated weighted average fair value for stock options granted under the Plan using the Black-
Scholes valuation model along with the assumptions used in the fair value calculations:
2004
2003
2002
Estimated fair value per option granted
$
5.82
$
8.80
$
9.19
Average exercise price per option granted
18.80
16.35
15.71
Expected stock volatility
30.0
%
47.2
%
51.6
%
Risk-free interest rate
3.7
%
3.8
%
4.7
%
Expected option life (in years)
5.6
7.0
7.0
The Compensation Committee has also granted restricted stock units that vest over two to four years under the 2004 Plan and
the HEC Plan. During the years ended December 31, 2004 and 2003, the Compensation Committee granted 4.4 million and 3.6
million restricted stock units with a weighted average grant-date fair value of approximately $17.46 and $10.71 per share,
respectively.
93