Albertsons 2015 Annual Report Download - page 81

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79
Stock Options
Stock options granted, exercised and outstanding consisted of the following:
Shares
Under Option
(In thousands)
Weighted
Average
Exercise Price
Weighted Average
Remaining
Contractual Term
(In years)
Aggregate
Intrinsic Value
(In thousands)
Outstanding, February 25, 2012 18,413 $ 28.90 2.62 $ —
Granted 9,370 2.54
Exercised (9) 2.28
Canceled and forfeited (5,528) 23.32
Outstanding, February 23, 2013 22,246 19.20 4.63 $ 10,402
Granted 10,083 6.58
Exercised (3,121) 2.29
Canceled and forfeited (5,873) 23.70
Outstanding, February 22, 2014 23,335 14.87 5.41 $ 15,982
Granted 5,022 7.54
Exercised (1,944) 3.71
Canceled and forfeited (5,533) 30.68
Outstanding, February 28, 2015 20,880 $ 9.98 6.55 $ 61,073
Vested and expected to vest in the future as of
February 28, 2015 19,681 $ 10.16 6.41 $ 57,694
Exercisable as of February 28, 2015 10,018 $ 13.51 4.31 $ 26,826
In fiscal 2015 and 2014, the Company granted 5 and 9, respectively, of non-qualified stock options to certain employees under
the Company’s 2012 Stock Plan with a weighted average grant date fair value of $3.28 and $2.78 per share, respectively. These
stock options vest over a period of three years, and were awarded as part of a broad-based employee incentive initiative
designed to retain and motivate employees across the Company.
In fiscal 2013, the Company’s Board of Directors granted 2 stock options to the Company’s Chief Executive Officer. The stock
options have a grant date fair value of $1.40 per share. These options vest over three years. In fiscal 2013, the Company’s
Board of Directors granted non-qualified stock options to the Company’s Chief Executive Officer, and the Board of Directors
granted non-qualified stock options to certain other employees, under the Company’s 2012 Stock Plan. The Company granted 8
stock options with a weighted average grant date fair value of $0.98 per share as part of a broad-based employee incentive
initiative designed to retain and motivate employees across the Company as it pursued its business transformation strategy.
These options vest over three years.
The Company used the Black Scholes option pricing model to estimate the fair value of the options at grant date based upon the
following assumptions:
2015 2014 2013
Dividend yield —% —% 1.0 – 2.1%
Volatility rate 50.8 – 53.2% 49.3 – 51.3% 42.3 – 61.2%
Risk-free interest rate 1.2 – 1.6% 0.6 – 1.0% 0.4 – 0.6%
Expected option life 4.0 – 5.0 years 4.0 – 6.0 years 4.5 – 6.0 years