Dollar General 2008 Annual Report Download - page 110

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stock unit awards granted under the plan to employees during the 2007 Predecessor period were
originally scheduled to vest and become payable ratably over a three-year period from the
respective grant dates. The nonvested restricted stock unit awards granted under the plan to non-
employee directors during the 2007 Predecessor period were originally scheduled to vest over a
one-year period from the respective grant dates, but became payable as a result of the Merger as
discussed above.
In accordance with the provisions of SFAS 123(R), unearned compensation is not
recorded within shareholders’ equity for nonvested restricted stock and restricted stock unit
awards. Accordingly, during the year ended February 2, 2007, the Company reversed its
unearned compensation balance as of February 3, 2006 of approximately $5.2 million, with an
offset to common stock and additional paid-in capital.
At January 30, 2009, 1,129,297 Rollover Options were outstanding, all of which were
exercisable. The aggregate intrinsic value of outstanding Rollover Options was $4.8 million with
a weighted average remaining contractual term of 6.44 years, and a weighted average exercise
price of $1.25. At February 1, 2008, 1,799,102 Rollover Options were outstanding, all of which
were exercisable. The aggregate intrinsic value of outstanding Rollover Options was $6.7 million
with a weighted average remaining contractual term of 7.36 years, and a weighted average
exercise price of $1.25.
During the Predecessor period from February 3, 2007 to July 6, 2007 and year ended
February 2, 2007, the weighted average grant date fair value of options granted was $5.37 and
$5.86, respectively; 4,213,373 and 617,234 options vested, net of forfeitures, respectively; with a
total fair value of approximately $23.6 million and $2.5 million, respectively; and the total
intrinsic value of stock options exercised was $10.8 million and $6.8 million, respectively. The
total intrinsic value of stock options repurchased by the Company under terms of the
management stockholder’ s agreements during 2008 and the 2007 Successor period was $2.5
million and $0.5 million, respectively.
All stock options granted prior to the Merger in the Predecessor period ended July 6,
2007 and year ended February 2, 2007 under the terms of the Company’ s pre-Merger stock
incentive plan were non-qualified stock options issued at a price equal to the fair market value of
the Company’ s common stock on the date of grant, were originally scheduled to vest ratably over
a four-year period, and were to expire 10 years following the date of grant.
A summary of Time Options activity during the Successor period ended January 30, 2009
is as follows:
Options
Issued
Weighted Average
Exercise Price
Balance, February 1, 2008
9,535,000
$
5.00
Granted
2,979,645
5.00
Exercised
-
-
Canceled
(1,977,000)
5.00
Balance, January 30, 2009
10,537,645
$
5.00