Dick's Sporting Goods 2003 Annual Report Download - page 47

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dks 03ar 45
7. STOCKHOLDERS’ EQUITY AND EMPLOYEE STOCK PLANS
Initial Public Offering During October 2002, the Company completed an initial public offering of 16,762,640 shares
of common stock, including the underwriters’ over-allotment, of which 5,544,000 were sold by us and 11,218,640 were
sold by certain of our stockholders. Proceeds, net of $2,817,000 in transaction costs, were $28,119,000. The net
proceeds were used to repay outstanding borrowings under our senior secured revolving credit facility.
Stock Option Plans At January 31, 2004, the aggregate number of common shares reserved for grant under the
Company’s 2002 Stock Option Plan (the “Plan”) is 19,866,000 shares. The stock option activity during the fiscal years
ended is as follows:
Weighted Weighted
Average Shares Average
Exercise Subject to Exercise
Shares Subject Price Per Exercisable Price Per
to Options Share Options Share
Outstanding, February 3, 2001 17,847,144 $ 1.76 11,723,814 $ 1.55
Granted 203,280 2.17 – –
Exercised (5,724,748) 1.08 – –
Cancelled (493,938) 2.17 – –
Outstanding, February 2, 2002 11,831,738 $ 2.08 8,014,596 $ 2.03
Granted 4,718,538 6.70 – –
Exercised (393,340) 2.05 – –
Cancelled (397,734) 2.17 – –
Outstanding, February 1, 2003 15,759,202 $ 3.46 8,909,490 $ 2.05
Granted 4,776,906 23.16 – –
Exercised (6,425,556) 2.10 – –
Cancelled (469,326) 3.70 – –
Outstanding, January 31, 2004 13,641,226 $ 10.99 4,607,322 $ 2.58
Stock options generally vest over four years in 25% increments from the date of grant and expire 10 years from the
date of grant. As of January 31, 2004, there were 10,284,126 shares of common stock available for issuance pursuant
to future stock option grants.
Additional information regarding options outstanding as of January 31, 2004, is as follows:
Options Outstanding Options Exercisable
Weighted
Average Weighted Weighted
Remaining Average Average
Contractual Exercise Exercise
Range of Exercise Prices Shares Life (Years) Price Shares Price
$1.08 - $2.17 4,337,008 5.58 $ 2.05 4,177,202 $ 2.04
$6.00 - $10.48 4,545,792 8.75 6.69 430,120 7.77
$15.29 - $22.87 2,568,072 9.70 21.55 – –
$25.07 - $25.25 2,190,354 9.97 25.23 – –
$1.08 - $25.25 13,641,226 8.12 $ 10.99 4,607,322 $ 2.58
Employee Stock Purchase Plan The Company has an employee stock purchase plan which provides that eligible
employees may purchase shares of the Company’s common stock. There are two offering periods in a fiscal year,
one ending on June 30 and the other on December 31, or as otherwise determined by the Company’s compensation
committee. The employee’s purchase price is 85% of the lesser of the fair market value of the stock on the first
business day or the last business day of the semi-annual offering period. Employees may purchase shares having a fair
market value of up to $25,000 for all purchases ending within the same calendar year. No compensation expense is
recorded in connection with the plan. The total number of shares issuable under the plan is 2,310,000.
There were 238,906 and 866,988 shares issued under the plan during fiscal 2003 and 2002, leaving 1,204,106 shares
available for future issuance.