American Home Shield 2007 Annual Report Download - page 78

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Notes to the Consolidated Financial Statements
A summary of option activity as of December 31, 2006, 2005 and 2004 and changes during the twelve months then ended is
presented below:
Stock
Options Weighted Avg.
Exercise Price
Remaining
Contractual
Term
Aggregate
Intrinsic
value (in
thousands)
Total exercisable, December 31, 2003 20,346,581 $ 13.16
Total outstanding, December 31, 2003 31,709,766 $ 12.60
Transactions during 2004
Granted to employees 2,049,680 $ 10.79
Exercised (1,250,434) $ 8.20
Terminated or resigned (545,085) $ 12.57
Total exercisable, December 31, 2004 22,573,344 $ 13.26 3 $ 48,003
Total outstanding, December 31, 2004 31,963,927 $ 12.66 4 $ 70,912
Transactions during 2005
Granted to employees 2,103,103 $ 13.43
Exercised (2,385,142) $ 9.90
Terminated or resigned (2,173,615) $ 12.26
Total exercisable, December 31, 2005 22,057,309 $ 13.33 3 $ 19,926
Total outstanding, December 31, 2005 29,508,273 $ 12.96 4 $ 25,796
Transactions during 2006
Granted to employees 2,325,250 $ 12.28
Exercised (5,201,108) $ 10.28
Terminated or resigned (2,570,509) $ 15.11
Total exercisable, December 31, 2006 18,465,807 $ 13.59 2 $ 24,760
Total outstanding, December 31, 2006 24,061,906 $ 13.25 4 $ 31,154
During the twelve months ended December 31, 2006, 2005, and 2004, the total intrinsic value of awards exercised was
approximately $11.1 million, $8.4 million and $5.2 million, respectively. The aggregate intrinsic value of outstanding and
exercisable awards was $31.2 million and $24.8 million, respectively at December 31, 2006, $25.8 million and $19.9 million,
respectively at December 31, 2005 and $70.9 million and $48.0 million, respectively at December 31, 2004. The cash received from
the exercise of options was approximately $48 million, $23 million, and $10 million for the twelve months ended December 31,
2006, 2005, and 2004 respectively.
The following table summarizes the range of exercise prices and the weighted average remaining contractual life of the options
outstanding and the range of exercise prices for the options exercisable at December 31, 2006:
Range of
Exercise Prices
Number
Outstanding
at 12/31/06
Weighted
Average
Remaining
Contractual
Term
Weighted
Average
Exercise Prices
Number
Exercisable
at 12/31/06
Weighted
Average
Exercise Price
$8.40 – 10.78 6,946,711 4 Years $ 10.03 5,314,729 $ 9.94
$10.89 – 15.94 11,720,750 4 Years $ 12.52 7,756,633 $ 12.37
$16.12 – 22.33 5,279,959 2 Years $ 18.19 5,279,959 $ 18.19
$31.13 – 77.56 114,486 1 Year $ 54.01 114,486 $ 54.01
$8.40 – 77.56(1) 24,061,906 4 Years $ 13.25 18,465,807 $ 13.59
(1) The options priced at $77.56 are options assumed by the Company as a result of business acquisitions.
The Company's share grants and restricted stock awards have a general vesting period of five years and are restricted as to the sale
or transfer of the shares prior to vesting. Restricted stock awards are non-transferable and subject to forfeiture if the holder does not
remain continuously employed by the Company during the vesting period, or, if the restricted stock is subject to performance
measures, if those performance measures are not attained. The fair value of the restricted stock awards is equal to the value of the
Company's stock on the date of grant. The Company includes the vested and unvested portions of the restricted
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