Dillard's 2012 Annual Report Download - page 77

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Notes to Consolidated Financial Statements (Continued)
11. Stock-Based Compensation (Continued)
grant under the plans, and 7,547,451 shares of Class A Common Stock were reserved for issuance
under the stock option plans. There were no stock options granted during fiscal 2012, 2011 and 2010.
During fiscal 2012, the remaining 2,245,000 of stock options outstanding were exercised, and the
Company retired 1,169,218 in shares tendered relative to these exercises. The Company uses the par
value method of accounting for shares repurchased under stock option plans. As a result of these share
repurchases during fiscal 2012, the Company reduced common stock and additional paid-in capital by
an aggregate of $8.8 million and charged $93.9 million to retained earnings.
Stock option transactions are summarized as follows:
Fiscal 2012
Weighted
Average
Stock Options Shares Exercise Price
Outstanding, beginning of year .................... 2,245,000 $25.74
Granted ..................................... — —
Exercised .................................... (2,245,000) 25.74
Expired ..................................... — —
Outstanding, end of year ......................... — —
Options exercisable at year-end .................... — —
The intrinsic value of stock options exercised during fiscal 2012, 2011 and 2010 was approximately
$135.7 million, $28.2 million and $8.5 million, respectively.
12. Commitments and Contingencies
Rental expense consists of the following:
Fiscal Fiscal Fiscal
(in thousands of dollars) 2012 2011 2010
Operating leases:
Buildings:
Minimum rentals ........................ $17,356 $19,509 $20,137
Contingent rentals ....................... 5,180 4,491 3,884
Equipment ............................... 12,302 24,110 27,024
$34,838 $48,110 $51,045
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.
F-27