WeightWatchers 2002 Annual Report Download - page 69

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
10. Stock Plans (Continued)
Under the stock purchase component of the plan discussed above, 1,639 shares of common stock
were sold to 45 members of the Company’s management group at a price of $2.13 to $4.04 per share.
Under the option component of the Plan, grants may take the following forms at the committee’s
sole discretion: Incentive Stock Options, Other Stock Options (other than incentive options), Stock
Appreciation Rights, Restricted Stock, Purchase Stock, Dividend Equivalent Rights, Performance Units,
Performance Shares and Other Stock—Based Grants. The maximum number of shares available for
grant under this plan was 5,647 shares of authorized common stock as of the effective date of the Plan.
In 2001, the number of shares available for grant was increased to 7,058 shares.
Pursuant to the option component of the Plan, the board of directors authorized the Company to
enter into agreements under which certain members of management received Non-Qualified Time and
Performance Stock Options providing them the opportunity to purchase shares of the Company’s
common stock at an exercise price of $2.13 to $43.70. The options are exercisable based on the terms
outlined in the agreement. The exercise price was equivalent to the fair market value at the date of
grant.
The fair value of each option is estimated on the date of grant using the Black-Scholes option
pricing model with the following weighted average assumptions:
Eight Months
Ended
December 28, December 29, December 30, April 29,
2002 2001 2000 2000
Dividend yield .......................... 0% 0% 0% 0%
Volatility .............................. 34.5% 34.6% 0% 0%
Risk-free interest rate .................... 3.5%-5.2% 5.1%-5.4% 5.9%-6.3% 6.5%-6.7%
Expected term (years) .................... 7.0 7.5 10 10
F-20