Albertsons 2006 Annual Report Download - page 75

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
STOCK OPTION PLANS
The company’s 2002 Stock Plan and the SUPERVALU/Richfood Stock Incentive Plan allow the granting of
non-qualified stock options and incentive stock options to purchase shares of the company’s common stock, to
key salaried employees at prices not less than 100 percent of their fair market value, determined based on the
average of the opening and closing sale price of a share on the date of grant. The company’s 1997 stock plan
allows only the granting of non-qualified stock options to purchase common shares to salaried employees at fair
market value determined on the same basis. In April 2002, the Board of Directors reserved an additional
3.8 million shares for issuance under the 1997 plan. In April 2005, the Board of Directors reserved an additional
9.0 million shares for issuance under the 2002 plan, which was approved by the shareholders of the company on
June 15, 2005. 7.5 million of these shares are reserved for issuance as stock options and the remaining
1.5 million shares are reserved for restricted stock awards. The company also has options outstanding under its
1983 and 1993 plans, but no further options may be granted under these plans. The plans provide that the Board
of Directors or the Executive Personnel and Compensation Committee of the Board (the “Committee”) may
determine at the time of granting whether each option granted, except those granted under the 1997 plan, will be
a non-qualified or incentive stock option under the Internal Revenue Code. The terms of each option will be
determined by the Board of Directors or the Committee. Generally, options issued prior to fiscal 2006 have a
term of ten years. Effective in fiscal 2006, options issued shall not be for more than a term of seven years.
Generally, options vest over four years. Options may be exercised in installments or otherwise, as the Board of
Directors or the Committee, may determine.
Changes in the options granted, exercised and outstanding under such plans are as follows:
Shares
Weighted Average
Price per Share
(In thousands)
Outstanding, February 22, 2003 13,005 $23.10
Granted 2,716 17.70
Exercised (2,103) 17.36
Canceled and forfeited (1,779) 36.18
Outstanding, February 28, 2004 11,839 $20.92
Granted 3,154 30.37
Exercised (3,550) 19.68
Canceled and forfeited (139) 25.57
Outstanding, February 26, 2005 11,304 $23.88
Granted 3,228 33.32
Exercised (2,377) 21.15
Canceled and forfeited (355) 27.73
Outstanding, February 25, 2006 11,800 $26.89
F-30