WeightWatchers 2002 Annual Report Download - page 71

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
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 30, April 29,
2000 2000
Dividend yield ................................. 0% 0%
Volatility ..................................... 0% 0%
Risk-free interest rate............................ 5.9%-6.3% 6.5%
Expected term (years) ............................ 10 10
A summary of the Company’s stock option activity is as follows:
Eight Months
December 28, December 29, Ended December
2002 2001 30, 2000 April 29, 2000
Weighted Weighted Weighted Weighted
Number average Number average Number average Number average
of exercise of exercise of exercise of exercise
Shares price Shares price shares price shares price
Options outstanding, Beginning of
year ..................... 164 $ 0.50 173 $ 0.50 159 $ 0.50 —
Granted .................... ——14 $ 0.50 159 $ 0.50
Exercised ————
Cancelled ................... (12) $0.50 (9) $ 0.50 ——
Options outstanding, end of year . . . . 152 $ 0.50 164 $ 0.50 173 $ 0.50 159 $ 0.50
Options exercisable, end of year . . . . 115 $ 0.50 84 $ 0.50 43 $ 0.50 —$ 0.50
Options available for grant, end of
year ....................... 248 236 227 241
Weighted average fair value of
options granted during the year . . . $ 0.23 $ 0.16
The weighted average remaining contractual life of options outstanding at December 28, 2002 was
7.3 years.
F-22