Dillard's 2005 Annual Report Download - page 61

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12. Stock Options
The Company has various stock option plans that provide for the granting of options to purchase shares of
Class A Common Stock to certain key employees of the Company. Exercise and vesting terms for options
granted under the plans are determined at each grant date. All options were granted at not less than fair market
value at dates of grant. At the end of fiscal 2005, 7,896,306 shares were available for grant under the plans and
12,995,897 shares of Class A Common Stock were reserved for issuance under the stock option plans. Stock
option transactions are summarized as follows:
Fiscal 2005 Fiscal 2004 Fiscal 2003
Fixed Options Shares
Weighted
Average
Exercise Price Shares
Weighted
Average
Exercise Price Shares
Weighted
Average
Exercise Price
Outstanding, beginning of
year .................... 3,845,009 $24.91 7,870,739 $22.45 9,669,755 $24.72
Granted ................... 4,020,000 25.74 — — — —
Exercised ................. (1,990,768) 20.48 (2,657,215) 16.00 (122,375) 10.44
Forfeited .................. (774,650) 38.27 (1,368,515) 28.09 (1,676,641) 35.27
Outstanding, end of year ...... 5,099,591 $25.26 3,845,009 $24.91 7,870,739 $22.45
Options exercisable at
year-end ................ 4,165,116 $25.54 2,486,134 $27.24 5,823,459 $23.56
Weighted-average fair value of
options granted during the
year .................... $ 10.53 $ — $ —
The following table summarizes information about stock options outstanding at January 28, 2006:
Options Outstanding Options Exercisable
Range of Exercise Prices
Options
Outstanding
Weighted-Average
Remaining
Contractual Life (Yrs.)
Weighted-
Average
Exercise Price
Options
Exercisable
Weighted-
Average
Exercise Price
$10.44 – $18.13 ................ 55,116 1.28 $12.36 55,116 $12.36
$24.01 – $25.74 ................ 5,039,475 8.27 25.40 4,105,000 25.71
$29.99 ....................... 5,000 3.30 29.99 5,000 29.99
5,099,591 8.19 $25.26 4,165,116 $25.54
13. Leases and Commitments
Rental expense consists of the following:
(in thousands of dollars)
Fiscal
2005
Fiscal
2004
Fiscal
2003
Operating leases:
Buildings:
Minimum rentals ........................................... $24,154 $33,266 $38,087
Contingent rentals .......................................... 6,775 6,941 8,732
Equipment .................................................... 16,609 14,567 17,282
$47,538 $54,774 $64,101
Contingent rentals on certain leases are based on a percentage of annual sales in excess of specified
amounts. Other contingent rentals are based entirely on a percentage of sales.
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