LensCrafters 2009 Annual Report Download - page 95

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NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS | 93 <
The fair value of the 2009 and 2008 grants were Euro 14.22 and 17.67 respectively.
A summary of option activity under the performance plans as of December 31, 2009, and changes during
the year then ended are as follows:
Number
of options
outstanding
Weighted average
exercise price
in Euro
Weighted average
remaining
contractual term
Aggregate
intrinsic value
Outstanding as of December 31, 2008 23,753,600 17.10
Granted 7,135,000 11.08
Forfeitures (478,000) 18.49
Modifi cations (11,400,000) 21.28
Exercised (75,000) 13.33
Outstanding as of December 31, 2009 18,935,600 12.30 5.49 113,689
Exercisable as of December 31, 2009 9,575,000 13.66 4.56 42,920
The fair value of the stock options granted was estimated at the date of grant using a binomial lattice
model. The following table presents the weighted - average assumptions used in the valuation and the
resulting weighted average fair value per option granted:
2009 2008 2007
Reassignment
of the STR 2006
plan employees
domiciled in the
USA
Reassignment
of the STR 2006
plan employees
not domiciled in
the USA PSP PSP
Dividend yield 1.43% 1.43% 1.43% 1.65% -
Risk-free interest rate 2.90% 2.66% -
Expected option life (years) 5.65 5.65 3.00 2.1 -
Expected volatility 35.52% 35.59% 43.03% -
As of December 31, 2009 there was Euro 33.3 million of total unrecognized compensation cost related
to non-vested share-based compensation arrangements; that cost is expected to be recognized over a
period of 3.01 years.
Cash received from option exercises under all share-based arrangements and actual tax benefi ts realized
for the tax deductions from option exercises are disclosed in the consolidated statements of shareholders’
equity.