Dollar General 2008 Annual Report Download - page 111

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109
During 2008, the weighted average grant date fair value of Time Options granted was
$2.38; 1,566,000 Time Options vested and are exercisable, net of forfeitures, with a total fair
value of approximately $4.1 million, and none of those options were exercised. At January 30,
2009, the aggregate intrinsic value of outstanding 2007 Time Options was $5.3 million with a
weighted average remaining contractual term of 8.9 years. During the 2007 Successor period, the
weighted average grant date fair value of Time Options granted was $2.65; no options vested or
were exercised. At February 1, 2008, the aggregate intrinsic value of outstanding 2007 Time
Options was $0 with a weighted average remaining contractual term of 9.6 years, and none of the
outstanding Time Options were exercisable.
A summary of Performance 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
(1,965,500)
5.00
Balance, January 30, 2009
10,549,145
$
5.00
During 2008, the weighted average grant date fair value of Performance Options granted
was $2.38; 1,848,487 Performance Options vested and are exercisable, net of forfeitures, with a
total fair value of approximately $4.8 million, and none of those options were exercised. At
January 30, 2009, the aggregate intrinsic value of outstanding Performance Options was $5.3
million with a weighted average remaining contractual term of 8.9 years. During the 2007
Successor period, the weighted average grant date fair value of Performance Options granted was
$2.65; 1,907,000 Performance Options vested and are exercisable, net of forfeitures, with a total
fair value of approximately $5.1 million, and none of those options were exercised. At February
1, 2008, the aggregate intrinsic value of outstanding 2007 Performance Options was $0 with a
weighted average remaining contractual term of 9.6 years.
At January 30, 2009, the total unrecognized compensation cost related to non-vested
stock options was $42.9 million with an expected weighted average expense recognition period
of 3.8 years.
The Company currently believes that the performance targets related to the Performance
Options will be achieved. If such goals are not met, and there is no change in control, no
compensation cost relating to these Performance Options will be recognized and any
compensation cost recognized to date will be reversed.
In January 2008, the Company granted 890,000 nonvested restricted shares to its Chief
Executive Officer. These shares vest on the first to occur of (i) a change in control, (ii) an initial
public offering, (iii) termination without cause or due to death or disability, or (iv) the last day of
the Company’ s 2011 fiscal year. These shares represent the only outstanding restricted shares as
of January 30, 2009 and February 1, 2008. For 2008 and the 2007 Successor period, the share-
based compensation expense related to restricted shares before income taxes was $1.1 million