Saks Fifth Avenue 2010 Annual Report Download - page 82

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SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
A summary of the stock options for the year ended January 29, 2011 is presented below:
2010
Shares
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
Weighted
Average
Remaining
Contractual
Life (Years)
Outstanding at beginning of year .............................. 2,308 $10.75
Granted .............................................. — —
Exercised ............................................ (346) 4.52
Forfeited ............................................. (56) 10.32
Outstanding at end of year ................................... 1,906 $11.89 $4,760 4.0
Options exercisable at end of year ............................. 878 $15.47 $ 378 3.4
Options expected to vest .................................... 977 $ 8.83 $4,163 4.4
There were no stock options granted during 2010. The weighted-average grant-date fair value of stock
options granted during 2009 and 2008 was $1.15 and $4.65, respectively. The total intrinsic value of stock
options exercised during 2010, 2009, and 2008 was $1,888, $115, and $1,951, respectively. The net tax benefit
realized from stock options exercised during 2010 was $774. Cash proceeds received from the exercise of stock
options during 2010 was $1,313. The total fair value of stock options vested during 2010, 2009, and 2008 was
$2,169, $2,265, and $1,459, respectively.
The following table summarizes information about stock options outstanding as of January 29, 2011:
Options Outstanding Options Exercisable
Range of Exercise Prices
Number
Outstanding
at January 29,
2011
Weighted
Average
Remaining
Contractual
Life (Years)
Weighted
Average
Exercise
Price
Number
Exercisable
at January 29,
2011
Weighted
Average
Remaining
Contractual
Life (Years)
Weighted
Average
Exercise
Price
$2.36 to $6.64 .................. 548 4.7 $ 2.77 61 1.3 $ 6.07
$6.65 to 8.07 ................... 16 1.4 $ 7.71 16 1.4 $ 7.71
$8.08 to $13.04 ................. 821 4.1 $13.04 410 4.1 $13.04
$13.05 to $20.31 ................ 521 3.1 $19.80 391 3.1 $19.80
1,906 4.0 $11.89 878 3.4 $15.47
RESTRICTED STOCK
The fair value of restricted stock is based on the market value of the Company’s common stock on the date
of grant. Compensation expense for restricted stock awards that cliff vest is expensed on a straight-line basis over
the requisite service period. Restricted stock awards with graded-vesting features are treated as multiple awards
based upon the vesting date. The Company records compensation expense for these awards on a straight-line
basis over the requisite service period for each separately vesting portion of the award. As of January 29, 2011,
total unrecognized compensation expense related to non- vested restricted stock awards, including an estimate for
pre-vesting forfeitures, was $13,149, which is expected to be recognized over a weighted-average period of 2.1
years.
F-32