Pep Boys 2007 Annual Report Download - page 118

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THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended February 2, 2008, February 3, 2007 and January 28, 2006
(dollar amounts in thousands, except share data)
(other than the current President & Chief Executive Officer), vest over a four-year period, with
one-fifth vesting on each of the grant date and the next four anniversaries thereof.
Non-qualified stock options and RSUs granted to the current President & Chief Executive Officer
vest over a three-year period, with one-quarter vesting on each of the grant date and the next three
anniversaries thereof.
Generally, all options granted prior to March 3, 2004 carry an expiration date of ten years and
options granted on or after March 3, 2004 carry an expiration date of seven years.
RSUs previously granted to non-officers vest fully on the third anniversary of their grant date.
RSUs previously granted to officers (i) on or prior to January 28, 2006, generally vest over a four-year
period with one-fifth vesting on each of the grant date and the next four anniversaries thereof and
(ii) after January 28, 2006, generally vest over a four-year period with one-fourth vesting on each of the
first four anniversaries of the grant date.
The Company has also granted RSUs under the 1999 plan in conjunction with its non-qualified
deferred compensation plan. Under the deferred compensation plan, the first 20% of an officer’s bonus
deferred into the Company’s stock fund is matched by the Company on a one-for-one basis with RSUs
that vest over a three-year period, with one third vesting on each of the first three anniversaries of the
grant date.
The exercise price, term and other conditions applicable to future stock option and RSU grants
under the 1999 plan are generally determined by the Board of Directors; provided that the exercise
price of stock options must be at least 100% of the quoted market price of the common stock on the
grant date. The Company currently satisfies all share requirements resulting from RSU conversions and
option exercises from its Treasury. The Company believes its Treasury share balance at February 2,
2008 is adequate to satisfy such activity during the next twelve-month period.
The following table summarizes the options under our plans:
Fiscal 2007
Weighted
Average
Exercise
Shares Price
Outstanding—beginning of year .............................. 2,100,832 $16.20
Granted ............................................... 1,084,091 15.29
Exercised .............................................. (291,125) 11.77
Forfeited ............................................... (72,138) 17.49
Expired ................................................ (371,959) 21.70
Outstanding—end of year .................................. 2,449,701 15.50
Vested and expected to vest ................................. 2,415,378 15.49
Options exercisable at year end .............................. 1,599,506 15.56
72
10-K