Kroger 2010 Annual Report Download - page 137

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A-57
NO T E S T O CO N S O L I D A T E D FI N A N C I A L ST A T E M E N T S , CO N T I N U E D
Stock options typically expire 10 years from the date of grant. Stock options vest between one and
five years from the date of grant, or for certain stock options, the earlier of the Company’s stock reaching
certain pre-determined and appreciated market prices or nine years and six months from the date of grant.
At January 29, 2011, approximately eight million shares of common stock were available for future option
grants under these plans.
In addition to the stock options described above, the Company awards restricted stock to employees
under various plans. The restrictions on these awards generally lapse between one and five years from
the date of the awards. The Company records expense for restricted stock awards in an amount equal to
the fair market value of the underlying stock on the grant date of the award, over the period the awards
lapse. As of January 29, 2011, approximately four million shares of common stock were available for future
restricted stock awards under the 2005 and 2008 Long-Term Incentive Plans (the “Plans”). The Company
has the ability to convert shares available for stock options under the Plans to shares available for restricted
stock awards. Four shares available for common stock option awards can be converted into one share
available for restricted stock awards.
All awards become immediately exercisable upon certain changes of control of the Company.
Stock Options
Changes in options outstanding under the stock option plans are summarized below:
Shares
subject
to option
(in millions)
Weighted-
average
exercise
price
Outstanding, year-end 2007 ......................................... 44.8 $20.94
Granted ...................................................... 3.5 $28.49
Exercised ..................................................... (8.3) $21.04
Canceled or Expired ............................................ (0.3) $23.08
Outstanding, year-end 2008 ......................................... 39.7 $21.58
Granted ...................................................... 3.6 $22.25
Exercised ..................................................... (3.4) $16.57
Canceled or Expired ............................................ (5.2) $27.12
Outstanding, year-end 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.7 $21.30
Granted ...................................................... 3.7 $20.23
Exercised ..................................................... (2.0) $16.31
Canceled or Expired ............................................ (0.5) $22.12
Outstanding, year-end 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.9 $21.45