Pep Boys 2008 Annual Report Download - page 139

THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended January 31, 2009, February 2, 2008 and February 3, 2007
(dollar amounts in thousands, except share data)
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 January 31,
2009 is adequate to satisfy such activity during the next twelve-month period.
The following table summarizes the options under our plans:
Fiscal 2008
Weighted
Average
Exercise
Shares Price
Outstanding—beginning of year ............................. 2,449,701 $15.50
Granted ............................................... 352,812 10.97
Exercised .............................................. (3,750) 6.38
Forfeited .............................................. (638,608) 14.53
Expired ............................................... (1,244,444) 16.42
Outstanding—end of year .................................. 915,711 13.20
Vested and expected to vest ................................ 894,430 13.24
Options exercisable at year end .............................. 682,418 $13.79
The following table summarizes information about options during the last three fiscal years (dollars
in thousands except per option amount):
Fiscal 2008 Fiscal 2007 Fiscal 2006
Weighted average fair value at grant date per option ..... $3.47 $ 5.04 $10.04
Intrinsic value of options exercised .................. 8 2,194 370
The aggregate intrinsic value of outstanding options and outstanding vested options at January 31,
2009 was $0. At January 31, 2009, the weighted average remaining contractual term of outstanding
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