GameStop 2006 Annual Report Download - page 96

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Class A common stock with respect to which options may be granted and provides for the granting of incentive
stock options, non-qualified stock options, and restricted stock, which may include, without limitation, restrictions
on the right to vote such shares and restrictions on the right to receive dividends on such shares. The options to
purchase Class A common shares are issued at fair market value of the underlying shares on the date of grant. In
general, the options vest and become exercisable ratably over a three-year period, commencing one year after the
grant date, and expire ten years from issuance. Shares issued upon exercise of options are newly issued shares.
Stock Options
A summary of the status of the Company’s stock options is presented below:
Shares
Weighted-
Average
Exercise
Price
(Thousands of shares)
Balance, January 31, 2004 ........................................ 22,614 $ 4.82
Granted ...................................................... 3,352 $ 9.20
Exercised .................................................... (2,392) $ 3.97
Forfeited ..................................................... (762) $ 8.41
Balance, January 29, 2005 ........................................ 22,812 $ 5.43
Granted ...................................................... 4,444 $10.32
Exercised .................................................... (3,480) $ 5.98
Forfeited ..................................................... (864) $ 9.73
Balance, January 28, 2006 ........................................ 22,912 $ 6.16
Granted ...................................................... 3,260 $20.68
Exercised .................................................... (6,660) $ 5.08
Forfeited ..................................................... (756) $17.57
Balance, February 3, 2007 ........................................ 18,756 $ 8.64
The following table summarizes information as of February 3, 2007 concerning outstanding and exercisable
options:
Range of Exercise Prices
Number
Outstanding
(000s)
Weighted-
Average
Remaining
Life (Years)
Weighted-
Average
Contractual
Price
Number
Exercisable
(000s)
Weighted-
Average
Exercise
Price
Options Outstanding Options Exercisable
$ 1.76 — $ 2.25 .............. 6,226 4.33 $ 2.24 6,226 $ 2.24
$ 5.90 — $ 6.36 .............. 650 6.18 $ 5.97 650 $ 5.97
$ 7.55 — $ 8.24 .............. 250 7.02 $ 7.76 196 $ 7.82
$ 9.00 — $10.63 .............. 8,674 6.47 $ 9.43 5,600 $ 9.18
$17.94 — $20.68 .............. 2,956 8.99 $20.46 80 $17.94
$ 1.76 — $20.68 .............. 18,756 6.16 $ 8.64 12,752 $ 5.66
The total intrinsic value of options exercised during the fiscal years ended February 3, 2007, January 28, 2006,
and January 29, 2005 was $123,788, $33,264, and $13,408, respectively. The intrinsic value of options exercisable
and options outstanding was $271,485 and $343,457, respectively, as of February 3, 2007.
The fair value of each option is recognized as compensation expense on a straight-line basis between the grant
date and the date the options become fully vested. During the 53 weeks ended February 3, 2007, the Company
F-28
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)