Pep Boys 2011 Annual Report Download - page 114

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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)
The following table summarizes information about options during the last three fiscal years (dollars
in thousands except per option):
Fiscal 2011 Fiscal 2010 Fiscal 2009
Weighted average fair value at grant date per
option .............................. $5.38 $4.28 $2.10
Intrinsic value of options exercised . . . . . . . . . . . $ 202 $ 609 $ 43
The aggregate intrinsic value of outstanding options, exercisable options and expected to vest
options at January 28, 2012 was $7.8 million, $5.2 million and $2.6 million, respectively. At January 28,
2012, the weighted average remaining contractual term of outstanding options, exercisable options and
expected to vest options was 3.9 years, 3.1 years and 5.2 years, respectively. At January 28, 2012, there
was approximately $1.7 million of total unrecognized pre-tax compensation cost related to non-vested
stock options, which is expected to be recognized over a weighted average period of 1.3 years.
The following table summarizes information about non-vested RSUs since January 28, 2012:
Number of Weighted Average
RSUs Fair Value
Nonvested at January 29, 2011 .................... 432,331 $10.16
Granted .................................... 321,314 10.45
Forfeited ................................... (3,051) 9.09
Vested ..................................... (123,847) 12.09
Nonvested at January 28, 2012 .................... 626,747 $ 9.93
The following table summarizes information about RSUs during the last three fiscal years:
(dollar amounts in thousands) Fiscal 2011 Fiscal 2010 Fiscal 2009
Weighted average fair value at grant date per unit $10.45 $ 9.32 $ 9.18
Fair value at vesting date .................. $1,498 $1,861 $1,455
Intrinsic value at conversion date . . . . . . . . . . . . . $ 896 $ 809 $ 675
Tax benefits realized from conversions . . . . . . . . . $ 336 $ 301 $ 251
At January 28, 2012, there was approximately $2.5 million of total unrecognized pre-tax
compensation cost related to non-vested RSUs, which is expected to be recognized over a weighted-
average period of 1.9 years.
The Company recognized approximately $1.3 million, $1.4 million, and $1.0 million of
compensation expense related to stock options, and approximately $1.9 million, $2.1 million, and $1.6
million of compensation expense related to restricted stock units, included in selling, general and
administrative expenses for fiscal 2011, 2010, and 2009, respectively. The related tax benefit recognized
was approximately $1.2 million, $1.3 million and $1.0 million for fiscal 2011, 2010 and 2009,
respectively.
Expected volatility is based on historical volatilities for a time period similar to that of the
expected term and the expected term of the options is based on actual experience. The risk-free rate is
70