Pep Boys 2009 Annual Report Download - page 130

THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended January 30, 2010, January 31, 2009 and February 2, 2008
(dollar amounts in thousands, except share and per share data)
NOTE 15—EQUITY COMPENSATION PLANS
The Company has a stock-based compensation plan originally approved by the stockholders on
May 21, 1990 under which it has previously granted non-qualified stock options and incentive stock
options to key employees and members of its Board of Directors. There are no awards remaining
available for grant under the 1990 Plan. The Company has a stock-based compensation plan originally
approved by the stockholders on June 2, 1999 under which it has previously granted and may continue
to grant non-qualified stock options, incentive stock options and restricted stock units (RSUs) to key
employees and members of its Board of Directors. On June 24, 2009, the stockholders renamed the
1999 Plan to the 2009 Plan, extended its terms to December 31, 2014 and increased the number of
shares issuable thereunder by 1,500,000. As of January 30, 2010, there were 2,005,775 awards
outstanding and 2,240,075 awards available for grant under the 2009 Plan.
Incentive stock options and non-qualified stock options previously granted under the 1990 and
2009 plans (i) to non-officers, vest fully on the third anniversary of their grant date and (ii) to officers,
vest in equal tranches over three or four year periods.
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 vest in equal tranches over three or four year periods.
The Company has also granted RSUs under the 2009 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 2009 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 stock. The Company believes its treasury share balance at January 30,
2010 is adequate to satisfy such activity during the next twelve-month period.
The following table summarizes the options under our plans:
Fiscal Year 2009
Weighted Average
Shares Exercise Price
Outstanding—beginning of year .................. 915,711 $13.20
Granted .................................... 948,184 4.50
Exercised ................................... (22,000) 6.64
Forfeited ................................... (8,748) 12.12
Expired .................................... (150,822) 15.89
Outstanding—end of year ....................... 1,682,325 8.14
Vested and expected to vest options—end of year ..... 1,578,753 8.30
Options exercisable—end of year ................. 589,437 $13.24
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