Thrifty Car Rental 2006 Annual Report Download - page 69

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initial grant, which was made at the initial public offering price. The non-qualified option rights vest in
three equal annual installments commencing on the first anniversary of the grant date and have a
term not exceeding ten years from the date of grant. The maximum number of shares for which
option rights may be granted under the LTIP to any participant during any calendar year is 285,000.
The following table sets forth the non-qualified option rights activity for non-qualified option rights
under the LTIP for the periods indicated:
Weighted
Weighted Average
A
ggregate
Number o
f
A
verage Remaining Intrinsic
Shares Exercise Contractual
V
alue
(In Thousands) Price Term (In Thousands)
Outstanding at December 31, 2003 2,565 17.33$ 5.83 22,096$
Granted - -
Exercised (619) 17.17
Canceled (7) 13.73
Outstanding at December 31, 2004 1,939 17.39 4.84 24,844
Granted - -
Exercised (979) 17.35
Canceled (4) 15.64
Outstanding at December 31, 2005 956 17.44 4.53 17,816
Granted - -
Exercised (426) 17.35
Canceled (3) 16.66
Outstanding at December 31, 2006 527 17.51$ 3.56 14,804$
Options exercisable at:
December 31, 2006 527 17.51$ 3.56 14,804$
December 31, 2005 956 17.44$ 4.53 17,816$
December 31, 2004 1,939 17.39$ 4.84 24,844$
The total intrinsic value of options exercised during 2006, 2005 and 2004 was $11,450,000,
$15,263,000, and $5,909,000, respectively. Total cash received for non-qualified option rights
exercised during 2006, 2005 and 2004 totaled $7,400,000, $16,979,000 and $10,630,000,
respectively. The Company deems a tax benefit to be realized under SFAS No. 123(R) when the
benefit provides incremental benefit by reducing current taxes payable that it otherwise would have
had to pay absent the share-based compensation deduction (the “with-and-without” approach).
Under this approach, share-based compensation deductions are, effectively, always considered last
to be realized. Due to significant net operating losses for income tax purposes, the Company did
not realize any tax benefits from option exercises during 2006, 2005 or 2004.
63