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Newell Rubbermaid Inc. 2007 Annual Report
69
The fair value of stock option awards granted during the years ended December 31, was estimated using the Black-Scholes option pricing model with
the following weighted average assumptions:
2007 2006 2005
Risk-free interest rate 4.7% 4.6% 3.9%
Dividend yield 2.8% 3.0% 3.0%
Expected volatility 25% 33% 33%
Expected life (in years) 5.5 6.5 6.5
The Company utilized its historical experience to estimate the expected life of the options and volatility.
The following summarizes the changes in the number of shares of common stock under option for the following periods (shares and aggregate intrinsic
value in millions):
Weighted Weighted
Weighted Exercisable Average Average Fair Value Aggregate
Average at End Exercise of Options Granted Intrinsic
Shares Exercise Price of Year Price During the Year Value
Outstanding at December 31, 2004 11.5 $28 5.0 $30
Granted 3.2 23 $ 6
Exercised — 23 $
—
Forfeited / expired (1.5) 29
Outstanding at December 31, 2005 13.2 $27 5.8 $29
Granted 3.2 25 $ 7
Exercised (0.8) 24 $ 3.5
Forfeited / expired (1.5) 27
Outstanding at December 31, 2006 14.1 $26 6.8 $28 $52.2
Granted 4.3 30 $ 7
Exercised (0.9) 25 $ 3.4
Forfeited / expired (1.5) 29
Outstanding at December 31, 2007 16.0 $27 7.3 $27 $19.7
Vested and expected to vest at December 31, 2007 12.8 $27
At December 31, 2007, the aggregate intrinsic value of exercisable options was $9.2 million.
Options outstanding and exercisable as of December 31, 2007 are as follows (shares in millions):
Options Outstanding Options Exercisable
Weighted Weighted Average Weighted Weighted Average
Number Average Remaining Number Average Remaining
Range of Exercise Prices Outstanding Exercise Price Contractual Life Exercisable Exercise Price Contractual Life
$19.00 – $22.49 2.0 $22 6.9 0.8 $22 6.5
$22.50 – $27.49 6.9 24 6.3 3.6 24 4.8
$27.50 – $34.99 6.1 30 7.7 1.9 30 4.9
$35.00 – $50.00 1.0 38 2.5 1.0 38 2.5
$19.00 – $50.00 16.0 $27 6.6 7.3 $27 4.7