iHeartMedia 2004 Annual Report Download - page 86

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NOTE K – SHAREHOLDERS’ EQUITY
Dividends
The Company’s Board of Directors declared quarterly cash dividends as follows.
(In millions, except per share data)
Stock Options
The Company has granted options to purchase its common stock to employees and directors of the Company and its affiliates under various
stock option plans at no less than the fair market value of the underlying stock on the date of grant. These options are granted for a term not
exceeding ten years and are forfeited in the event the employee or director terminates his or her employment or relationship with the Company
or one of its affiliates. All option plans contain anti-dilutive provisions that require the adjustment of the number of shares of the Company
common stock represented by each option for any stock splits or dividends.
The following table presents a summary of the Company’s stock options outstanding at and stock option activity during the years ended
December 31, 2004, 2003 and 2002 (“Price” reflects the weighted average exercise price per share):
(In thousands, except per share data)
83
Amoun
t
per
Declaration Common Total
Date Share Record Date Payment Date Paymen
t
2004:
February 19, 2004 $ 0.10 March 31, 2004 April 15, 2004 $ 61.7
April 28, 2004 0.10 June 30, 2004 July 15, 2004 60.2
July 21, 2004 0.125 September 30, 2004 October 15, 2004 72.5
October 20, 2004 0.125 December 31, 2004 January 15, 2005 70.8
2003:
July 23, 2003 0.10 September 30, 2003 October 15, 2003 61.6
October 23, 2003 0.10 December 31, 2003 January 15, 2004 61.6
2004 2003 2002
Options Price Options Price Options Price
Outstanding, beginning of year 43,094 $44.64 42,943 $44.57 47,147 $43.92
Assumed in acquisitions
—
— — — 114 51.61
Granted 4,706 44.27 4,955 36.75 262 34.76
Exercised (1) (1,470) 16.85 (2,477) 18.96 (2,508) 21.33
Forfeited or expired (4,405)52.48 (2,327)54.26 (2,072)56.73
Outstanding, end of year 41,925 $ 44.98 43,094 $ 44.64 42,943 $ 44.57
Exercisable, end of year 28,777 27,267 29,614
Weighted average fair value per option granted $ 15.09 $ 17.29 $ 16.35
(1) The Company received an income tax benefit of $2.9 million, $20.6 million and $22.5 million relating to the options exercised during
2004, 2003 and 2002, respectively. Such benefits are recorded as adjustments to “Additional paid-in capital” in the statement of
shareholders’ equity.