American Home Shield 2003 Annual Report Download - page 57

ServiceMaster    55
Stock Price Weighted Avg. Share Grants/ Price
Options Range(1) Exercise Price Restricted Stock Range
Total exercisable, December 31, 2000 12,208,351 $2.25 – 87.55 $12.37 ––
Total outstanding, December 31, 2000 26,515,329 $2.25 – 87.55 $12.84 482,356 $2.86 – 7.96
Transactions during 2001
Granted to employees 5,184,141 $9.10 – 12.52 $10.63 ––
Exercised or vested (864,418) $2.25 – 11.41 $6.52 (171,518) $2.86 – 7.96
Terminated or resigned (1,503,167) $2.25 – 87.55 $17.27 (210,319) $2.86 – 7.96
Total exercisable, December 31, 2001 15,237,607 $2.25 – 77.56 $12.36 ––
Total outstanding, December 31, 2001 29,331,885 $2.25 – 77.56 $12.40 100,519 $2.86 – 7.96
Transactions during 2002
Granted to employees 4,939,141 $9.09 – 15.10 $13.08 179,000 $10.51–13.80
Exercised or vested (1,586,248) $2.25 – 14.55 $7.60 (46,632) $2.86 – 7.96
Terminated or resigned (871,439) $5.14 – 73.53 $16.37 ––
Total exercisable, December 31, 2002 18,089,830 $2.25 – 77.56 $13.05 ––
Total outstanding, December 31, 2002 31,813,339 $2.25 – 77.56 $12.64 232,887 $2.86 – 13.80
Transactions during 2003
Granted to employees 2,432,674 $8.40 – 11.21 $9.91 364,419 $9.50 – 11.97
Exercised or vested (1,296,101) $6.44 – 11.50 $7.70 (56,092) $2.86 – 13.80
Terminated or resigned (1,240,146) $2.25 – 37.40 $13.49 (3,514) $9.95
Total exercisable, December 31, 2003 20,346,581 $6.44 – 77.56 $13.16 ––
Total outstanding, December 31, 2003 31,709,766 $6.44 – 77.56 $12.60 537,700 $3.03 - 13.80
(1) The options priced at $73.53 to $87.55 are options assumed by the Company as a result of business acquisitions.
Options outstanding at December 31,2003:
Number Weighted Average Weighted Number Weighted
Range of Outstanding Remaining Average Exercisable Average
Exercise Prices at 12/31/03 Life Exercise Price at 12/31/03 Exercise Price
$6.44 – 10.78 13,366,166 4.0 Years $9.63 7,407,729 $9.38
$10.80 – 15.94 12,072,574 5.0 Years $12.26 7,279,233 $11.88
$16.12 – 22.33 5,919,582 5.0 Years $18.18 5,308,175 $18.19
$27.20 – 77.56 351,444 3.0 Years $43.09 351,444 $43.09
$6.44 – 77.56 31,709,766 5.0 Years $12.60 20,346,581 $13.16
Prior to 2003, the Company accounted for employee share
options under the intrinsic method of Accounting Principles
Board Opinion 25, as permitted under GAAP. Accordingly,
no compensation cost had been recognized in the accompa-
nying financial statements in 2002 and 2001 related to these
options. See the “Stock-Based Compensation”note in the
“Significant Accounting Policies”section for the proforma
net income and earnings per share under the fair-value based
method of SFAS 123. In computing this proforma impact,
the fair value of each option is estimated on the date of grant
based on the Black-Scholes option pricing model with the
following weighted-average assumptions in 2003, 2002 and
2001: risk-free interest rates of 3.6 percent, 4.5 percent and
4.8 percent, respectively; dividend yields of 4.2 percent 3.2
percent and 3.7 percent, respectively; and average expected
lives of six to seven years. The options granted to employees
in 2003, 2002 and 2001 have weighted-average fair values of
$2.14, $3.51 and $2.41, respectively and vest ratably over five
years.The Company has estimated the value of these options
assuming a single weighted-average expected life for the
entire award.
Options and grant transactions during the last three years
are summarized below:
Notes to Consolidated Financial Statements