Kroger 2010 Annual Report Download - page 138

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A-58
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
A summary of options outstanding and exercisable at January 29, 2011 follows:
Range of Exercise
Prices
Number
outstanding
Weighted-
average
remaining
contractual life
Weighted-
average
exercise price
Options
exercisable
Weighted-
average
exercise price
(in millions) (in years) (in millions)
$13.78 - $16.50 7.3 3.15 $ 15.72 7.3 $15.72
$16.51 - $20.15 6.6 4.10 $ 18.37 6.2 $18.27
$20.16 - $22.97 7.2 8.75 $ 21.23 1.6 $22.18
$22.98 - $24.54 8.0 0.86 $ 23.66 7.2 $23.74
$24.55 - $28.62 6.8 6.73 $ 28.29 4.7 $28.25
$13.78 - $28.62 35.9 4.61 $ 21.45 27.0 $21.01
The weighted-average remaining contractual life for options exercisable at January 29, 2011, was
approximately 3.6 years. The intrinsic value of options outstanding and exercisable at January 29, 2011 was
$64 and $60, respectively.
Restricted stock
Restricted
shares
outstanding
(in millions)
Weighted-
average
grant-date
fair value
Outstanding, year-end 2007 ................................. 3.4 $ 25.89
Granted ............................................... 2.5 $ 28.42
Lapsed ................................................ (1.7) $ 26.48
Canceled or Expired ..................................... (0.1) $ 25.70
Outstanding, year-end 2008 ................................. 4.1 $ 27.22
Granted ............................................... 2.6 $ 22.22
Lapsed ................................................ (2.2) $ 27.33
Canceled or Expired ..................................... (0.1) $ 25.33
Outstanding, year-end 2009 ................................. 4.4 $ 24.25
Granted ............................................... 2.4 $ 20.25
Lapsed ................................................ (2.3) $ 23.62
Canceled or Expired ..................................... (0.1) $ 23.13
Outstanding, year-end 2010.................................. 4.4 $ 22.39
The weighted-average fair value of stock options granted during 2010, 2009 and 2008 was $5.12,
$6.29 and $8.65, respectively. The fair value of each stock option grant was estimated on the date of grant
using the Black-Scholes option-pricing model, based on the assumptions shown in the table below. The
Black-Scholes model utilizes extensive judgment and financial estimates, including the term employees
are expected to retain their stock options before exercising them, the volatility of the Company’s stock
price over that expected term, the dividend yield over the term and the number of awards expected to be