Pep Boys 2010 Annual Report Download - page 127

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THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended January 29, 2011, January 30, 2010 and January 31, 2009
NOTE 14—EQUITY COMPENSATION PLANS (Continued)
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 29,
2011 is adequate to satisfy such activity during the next twelve-month period.
The following table summarizes the options under the plans:
Fiscal Year 2010
Weighted Average
Shares Exercise Price
Outstanding—beginning of year .................. 1,682,325 $ 8.14
Granted .................................... 307,653 10.30
Exercised ................................... (96,590) 6.05
Forfeited ................................... (26,477) 5.97
Expired .................................... (35,109) 13.24
Outstanding—end of year ....................... 1,831,802 8.55
Vested and expected to vest options—end of year ..... 1,785,734 8.56
Options exercisable—end of year ................. 849,614 $10.66
The following table summarizes information about options during the last three fiscal years (dollars
in thousands except per option):
Fiscal 2010 Fiscal 2009 Fiscal 2008
Weighted average fair value at grant date per
option .............................. $4.28 $2.10 $3.47
Intrinsic value of options exercised ........... $609 $ 43 $ 8
The aggregate intrinsic value of outstanding options, exercisable options and expected to vest
options at January 29, 2011 was $10.9 million, $3.8 million and $6.9 million, respectively. At January 29,
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