Dick's Sporting Goods 2006 Annual Report Download - page 58

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9. Stock-Based Compensation and Employee Stock Plans
Stock Option Plans — The Company grants stock options to purchase common stock under the Plan. Stock options generally vest
over four years in 25% increments from the date of grant and expire 10 years from date of grant. As of February 3, 2007, there were
8,743,418 shares of common stock available for issuance pursuant to future stock option grants. The stock option activity during the
year is presented in the following table:
Weighted
Average
Weighted Remaining Aggregate
Shares Subject Average Exercise Contractual Intrinsic Value
to Options Price per Share Life (Years) (in thousands)
Outstanding, January 31, 2004 13,641,226 $10.99 2.58 $ 189,477
Granted 380,010 31.60
Exercised (1,532,121) 3.24
Cancelled (384,705) 15.25
Outstanding, January 29, 2005 12,104,410 $ 12.47 5.91 $ 259,398
Granted 1,243,944 35.79
Exercised (1,320,401) 5.65
Cancelled (388,566)25.58
Outstanding, January 28, 200611,639,387 $ 15.32 8.72 $ 249,432
Granted 1,378,458 39.22
Exercised (2,685,858) 8.59
Cancelled (515,573) 29.72
Outstanding, February 3, 2007 9,816,414 $ 19.76 6.64 $324,610
Exercisable, February 3, 2007 5,527,184 $11.43 5.77 $ 228,852
The aggregate intrinsic value in the table above is based on the Company’s closing stock prices for the last business day of the
period indicated. The total intrinsic value for stock options exercised for 2006, 2005 and 2004 was $37.1 million, $40.2 million
and $31.8 million, respectively. The total fair value of options vested for 2006, 2005 and 2004 was $26.2 million, $8.4 million and
$6.6 million, respectively. The nonvested stock option activity for the year ended February 3, 2007 is presented in the following table:
Weighted
Average
Shares Fair Value
Nonvested, January 28, 20067,767, 647 $ 8.83
Granted 1,378,458 16.67
Vested (4,342,906)6.03
Forfeited (513,969)12.55
Nonvested, February 3, 2007 4,289,230 $ 13.74
As of February 3, 2007, total unrecognized stock-based compensation expense related to nonvested stock options was
approximately $34.0 million, which is expected to be recognized over a weighted average period of approximately 2.37 years.
The Company issues new shares of common sock upon exercise of stock options.
DICK’S SPORTING GOODS, INC. 2006 ANNUAL REPORT
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