North Face 2002 Annual Report Download - page 55

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73
Comprehensive Income in the Consolidated Balance Sheets are summarized, net of related income taxes, as follows:
In thousands 2002 2001
Foreign currency translation $ (80,728) $(106,169)
Minimum pension liability adjustment (128,494) (1,653)
Foreign exchange hedging contracts (5,269) 4,192
Unrealized gains on marketable securities 350 590
$(214,141) $(103,040)
Note M – Redeemable Preferred Stock
The Series B Convertible Preferred Stock (Note L) was purchased by the ESOP in 1990. The ESOP’s purchase of
the preferred shares was funded by a loan of $65.0 million from the Company; this loan was repaid through
2002. Interest income on this loan was $.1 million in 2002, $.9 million in 2001 and $1.7 million in 2000.
Principal and interest obligations on the loan were satisfied as the Company made contributions to the savings
plan and dividends were paid on the Preferred Stock. As principal payments were made on the loan, shares of
Preferred Stock were allocated to participating employees’ accounts within the ESOP. By the end of 2002, all
shares of Preferred Stock had been allocated to participating employees’ accounts.
Note N – Stock-based Compensation
The Company may grant nonqualified stock options, stock awards and restricted stock to officers, directors and
key employees under a stock compensation plan approved by shareholders.
Stock options are granted at prices not less than fair market value on the date of grant. Options become exer-
cisable generally one year after the date of grant and expire ten years after the date of grant. Stock option activity
is summarized as follows:
Shares Under Weighted Average
Options Exercise Price
Balance January 1, 2000 6,631,496 $36.74
Options granted 2,213,025 26.20
Options exercised (51,130) 21.60
Options canceled (294,500) 34.46
Balance December 30, 2000 8,498,891 34.17
Options granted 2,419,090 35.59
Options exercised (1,699,860) 26.41
Options canceled (208,140) 40.33
Balance December 29, 2001 9,009,981 35.87
Options granted 2,453,000 40.90
Options exercised (1,326,026) 30.29
Options canceled (343,265) 41.16
Balance January 4, 2003 9,793,690 $37.70
Stock options outstanding at January 4, 2003 are summarized as follows:
Range of Number Weighted Average Weighted Average
Exercise Prices Outstanding Remaining Contractual Life Exercise Price
$ 20 - 25 196,160 1.7 years $ 23.76
25 - 30 1,260,270 5.9 years 26.15
30 - 35 859,550 3.9 years 34.49
35 - 40 2,065,960 8.2 years 35.63
40 - 45 5,411,750 7.2 years 42.20
$ 20 - 45 9,793,690 6.9 years $ 37.70