Papa Johns 2003 Annual Report Download - page 64

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63
18. Stock Options (continued)
Pro forma information regarding net income and earnings per share is required by SFAS No. 123, which
also requires that the information be determined as if we have accounted for our employee stock options
granted subsequent to December 25, 1994 under the fair value method of that Statement. The fair value
for these options was estimated at the date of grant using a Black-Scholes option-pricing model.
For purposes of pro forma disclosures, the estimated fair value of the options granted prior to 2002 is
amortized to expense over the options’ vesting period. See Note 2 for our pro forma information, along
with the indicated weighted average assumptions used.
Information pertaining to options for 2003, 2002 and 2001 is as follows (number of options in
thousands):
2003
2002
2001
Number
Weighted
Number
Weighted
Number
Weighted
of
Average
of
Average
of
Average
Options
Exercis e Price
Options
Exercis e Price
Options
Exercis e Price
Outstanding-beginning of year
3,382
$28.70
4,063
$28.52
5,269
$28.53
Granted
471
28.85
12
28.49
207
22.73
Exercis ed
278
23.83
399
22.92
387
21.72
Cancelled
212
33.81
294
34.10
1,026
29.96
Outstanding-end of year
3,363
$28.80
3,382
$28.70
4,063
$28.52
Exercisable-end of year
2,838
$28.87
3,163
$28.87
3,488
$28.39
Weighted average fair value
of options granted during
the year
$5.45
$9.49
$7.58