Garmin 2007 Annual Report Download - page 99

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73
Stock-Based Compensation Activity
A summary of the Company’s stock-based compensation activity and related information under the 2005
Equity Incentive Plan, the 2000 Equity Incentive Plan and the 2000 Non-employee Directors’ Option Plan for the
years ended December 29, 2007, December 30, 2006, and December 31, 2005 is provided below:
Weighted-Average
Exercise Price Number of Shares
(In Thousands)
Outstanding at December 25, 2004 16.06 5,450
Granted 26.51 1,672
Exercised 10.68 (644)
Forfeited 18.51 (124)
Outstanding at December 31, 2005 19.29 6,354
Granted 48.54 2,413
Exercised 12.59 (994)
Forfeited 28.57 (47)
Outstanding at December 30, 2006 $29.24 7,726
Granted $84.61 2,864
Exercised $18.29 (934)
Forfeited $38.11 (125)
Outstanding at December 29, 2007 $46.82 9,531
Exercisable at December 29, 2007 $23.21 3,111
Exercise Options Remaining Options
Price Outstanding Life (Years) Exercisable
(In Thousands) (In Thousands)
$7.00 -$20.00 2,139 5.39 1,611
$20.01 - $40.00 2,270 7.15 1,091
$40.01 - $60.00 2,296 8.71 409
$60.01 - $80.00 1,376 9.44 -
$80.01 - $100.00 4 9.67 -
$100.01 - $120.00 1,443 9.93 -
$120.01 - $140.00 3 9.77 -
9,531 7.88 3,111
Stock Options as of December 29, 2007
The weighted-average remaining contract life for options outstanding and exercisable at December 29,
2007 are 7.88 and 6.11 years. respectively.
The fair value for these options was estimated at the date of grant using a Black-Scholes option pricing
model with the following weighted-average assumptions for 2007, 2006 and 2005:
2007 2006 2005
Weighted average fair value of options granted $33.81 $20.01 $9.48
Expected volatility 0.3677 0.3534 0.3224
Dividend yield 0.76% 1.00% 0.98%
Expected life of options in years 6.0 6.3 6.3
Risk-free interest rate 4% 5% 4%
The Black-Scholes option valuation model was developed for use in estimating the fair value of traded
options which have no vesting restrictions and are fully transferable. In addition, option valuation models require the