Radio Shack 2008 Annual Report Download - page 74

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Information with respect to stock options activity under the above plans is as follows:
Shares
(In thousands)
Weighted
Average
Exercise
Price
Remaining
Contractual
Life
(in years)
Aggregate
Intrinsic
Value
(in millions)
Outstanding at January 1, 2008 15,402 $ 29.31
Grants 855 18.17
Exercised -- --
Forfeited (2,431) 35.77
Expired (1,207) 28.14
Outstanding at December 31, 2008 12,619 $ 27.43 3.1 $ --
Exercisable at December 31, 2008
9,572
$ 31.11
2.4
$ --
The compensation cost charged against income for stock-based compensation plans was $12.8 million,
$12.7 million and $20.2 million in 2008, 2007 and 2006, respectively. The total income tax benefit recognized
for these stock-based compensation plans was $3.4 million, $2.6 million and $6.4 million in 2008, 2007 and
2006, respectively.
The aggregate intrinsic value of options exercised under our stock option plans was zero, $22.9 million
and $0.9 million for 2008, 2007 and 2006, respectively. The aggregate intrinsic value is the amount by
which the market price of our common stock on the date of exercise exceeded the exercise price of the
option.
The following table summarizes information concerning currently outstanding and exercisable options of our
common stock:
(Share amounts
in thousands)
Options Outstanding
Options Exercisable
Range of
Exercise Prices
Shares
Outstanding
at Dec. 31, 2008
Weighted
Average
Remaining
Contractual Life
(in years)
Weighted
Average
Exercise Price
Shares
Exercisable
at Dec. 31, 2008
Weighted
Average
Exercise Price
$ 13.82 - 13.82 4,000 4.5 $ 13.82 2,200 $ 13.82
14.71 - 28.02 2,711 4.0 20.89 1,464 22.66
29.35 - 35.08 1,814 2.0 31.34 1,814 31.34
38.35 - 38.35 1,860 2.2 38.35 1,860 38.35
39.03 - 60.16 2,234 1.0 47.44 2,234 47.44
$ 13.82 - 60.16 12,619 3.1 $ 27.43 9,572 $ 31.11
The number of exercisable shares outstanding at December 31, 2008, 2007 and 2006, was 9.6 million,
11.4 million and 15.9 million, respectively.
At December 31, 2008, there was $7.6 million of unrecognized compensation expense related to the
unvested portion of our stock options that is expected to be recognized over a weighted average period of
1.0 years. The total fair value of stock options vested was $8.5 million, $14.1 million and $19.3 million in
2008, 2007 and 2006, respectively.
Restricted Stock Plan: The 2007 Restricted Stock Plan (“2007 RSP”) permits the grant of up to 0.5
million shares of restricted stock to selected officers of the company, as determined by the MD&C. The
2007 RSP has a five-year term and will expire on May 31, 2012. Restricted stock awards are valued at the
market price of a share of our common stock on the date of grant. We granted approximately 158,000,
132,500 and 103,000 shares of restricted stock in 2008, 2007 and 2006, respectively, under the 1997 ISP,
1999 ISP and the 2007 RSP. In general, these awards vest at the end of a three-year period from the date
of grant and are expensed on a straight-line basis over that period, which is considered to be the requisite
service period. This expense totaled $1.5 million, $0.9 million and $0.2 million for the years ended December
31, 2008, 2007 and 2006, respectively. As of December 31, 2008, there were approximately 193,000 shares
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