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52
The following table summarizes option activity (in thousands, except per share amounts and contractual lives in years):
Weighted
Number Weighted average Aggregate
of options average remaining intrinsic
outstanding exercise price contractual life value
Outstanding options at September 30, 2007 17,211 $ 49.80
Options granted 2,249 27.59
Options exercised (973) 15.73
Options expired (842) 55.64
Options forfeited (215) 43.18
Outstanding options at September 28, 2008 17,430 $ 48.64
Options granted 2,714 18.73
Options exercised (62) 25.38
Options expired (1,506) 39.46
Options forfeited (259) 34.05
Outstanding options at September 27, 2009 18,317 $ 45.24
Options granted 3,136 40.78
Options exercised (1,624) 27.30
Options expired (553) 56.23
Options forfeited (330) 29.15
Outstanding options at September 26, 2010 18,946 $ 46.00 2.99 $ 59,984
Vested/expected to vest at September 26, 2010 18,436 $ 46.34 2.91 $ 44,353
Exercisable options at September 26, 2010 12,677 $ 52.90 1.68 $ 16,139
The weighted average fair values of options granted during fiscal years 2010, 2009 and 2008 were $16.59, $7.75 and $6.46,
respectively. The aggregate intrinsic values of stock options at exercise, represented in the table above, was approximately
$13.8 million during fiscal year 2010 and $0.2 million during fiscal year 2009. As of the end of fiscal years 2010 and 2009,
there was approximately $62.2 million and $34.3 million of unrecognized share-based payment expense, respectively, related
to nonvested stock options, net of estimated forfeitures, related to approximately 5.8 million and 4.7 million shares,
respectively. We anticipate this expense to be recognized over a weighted average period of approximately three years.
A summary of options outstanding and exercisable at September 26, 2010 follows (share amounts in thousands):
Range of Exercise Prices Options Outstanding Options Exercisable
Weighted Weighted average Weighted
Number average remaining Number average
From To outstanding exercise price life (in years) exercisable exercise price
$ 11.12 $ 27.62 4,058 $ 22.36 4.36 1,219 $ 23.95
28.03 40.83 6,322 40.16 3.97 2,894 39.59
41.05 60.74 3,598 53.56 1.56 3,596 53.56
66.81 66.81 3,885 66.81 1.94 3,885 66.81
68.96 73.14 1,083 69.00 0.61 1,083 69.00
Total 18,946 $ 46.00 2.99 12,677 $ 52.90
Share-based payment expense related to vesting stock options recognized during fiscal years 2010, 2009 and 2008 totaled
approximately $18.7 million, $13.3 million and $10.5 million, respectively.
The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model
with the following weighted average assumptions:
2010 2009 2008
Expected dividend yield 0.00% 0.00% 2.90%
Risk-free interest rate 2.26% 1.56% 2.32%
Expected volatility 46.19% 52.31% 36.73%
Expected life, in years 4.56 3.97 3.38
Risk-free interest rate is based on the U.S. treasury yield curve on the date of the grant for the time period equal to the
expected term of the grant. Expected volatility is calculated using a ratio of implied volatility based on the Newton-Raphson
method of bisection, and four or six year historical volatilities based on the expected life of each tranche of options. The