Neiman Marcus 2003 Annual Report Download - page 58

A summary of the status of the Company's 1997 and 1987 Stock Incentive Plans as of July 31, 2004, August 2, 2003 and August 3,
2002 and changes during the fiscal years ended on those dates are presented in the following table:
July 31, 2004 August 2, 2003 August 3, 2002
Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price
Outstanding at beginning of year 3,079,705 $ 29.54 2,894,300 $ 28.59 2,753,900 $ 28.78
Granted 903,650 43.33 822,525 30.93 542,500 24.50
Exercised (780,600) 29.34 (392,300) 25.96 (338,550) 23.52
Canceled (193,600) 35.16 (244,820) 28.93 (63,550) 27.48
Outstanding at end of year 3,009,155 $ 33.37 3,079,705 $ 29.54 2,894,300 $ 28.59
Exercisable at year end 713,110 $ 28.68 1,012,790 $ 29.39 834,570 $ 28.39
Options outstanding at July 31, 2004 were granted at prices (not less than 100 percent of the fair market value on the date of the grant)
varying from $14.375 to $53.08. Options granted during 2004 cliff vest on the third anniversary of the grant and expire six years from
the grant date. Options granted prior to 2003 vest ratably over five years and expire after ten years. There were 151 employees with
options outstanding at July 31, 2004.
The following table summarizes information about the Company's stock options as of July 31, 2004:
Options Outstanding Options Exercisable
Range
Of
Exercise
Prices
Shares
Outstanding
At July 31,
2004
Weighted-
Average
Remaining
Contractual
Life (Years)
Weighted-
Average
Exercise
Price
Shares
Outstanding
At July 31,
2004
Weighted-
Average
Exercise
Price
$ 14.38 - $ 15.38 6,700 0.6 $ 14.85 6,700 $ 14.85
$ 23.13 - $ 29.19 833,130 5.9 $ 24.44 410,460 $ 24.54
$ 30.35 - $ 36.50 1,333,975 4.8 $ 32.83 295,950 $ 34.75
$ 43.05 - $ 53.08 835,350 5.2 $ 43.29 — $ —
3,009,155 5.2 $ 33.37 713,110 $ 28.68
Spin-off from Harcourt General, Inc. On October 22, 1999, Harcourt General, Inc. (Harcourt General) completed the spin-off of its
controlling equity position in the Company in a tax-free distribution to its shareholders (Spin-off). Harcourt General distributed
approximately 21.4 million of its approximately 26.4 million shares of the Company's common stock and subsequently divested itself
entirely of any holdings in the Company's common stock. Each common shareholder of Harcourt General received 0.3013 of a share
of Class B Common Stock of the Company for every share of Harcourt General Common Stock and Class B Stock held on October
12, 1999, which was the record date for the distribution. This transaction had no impact on the reported equity of the Company.
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