AutoNation 2001 Annual Report Download - page 66

approximately $48.2 million. A related pre-tax gain of $24.0 million has been
reflected in Other Income (Expense), Net, in the accompanying 2000 Consolidated
Income Statement.
The Company has 5.0 million authorized shares of preferred stock, par value
$.01 per share, none of which are issued or outstanding. The Board of Directors
has the authority to issue the preferred stock in one or more series and to
establish the rights, preferences and dividends.
11. STOCK OPTIONS AND WARRANTS
The Company has various stock option plans under which options to purchase
shares of common stock may be granted to key employees and directors of the
Company. Options granted under the plans are non-qualified and are granted at a
price equal to the quoted market price of the common stock on the trading day
immediately prior to the date of grant. Generally, options granted will have a
term of 10 years from the date of grant, and will vest in increments of 25% per
year over a four-year period on the yearly anniversary of the grant date.
Effective June 30, 2000, in conjunction with the tax-free spin-off of ANC
Rental, options to purchase approximately 2.8 million shares of common stock
held by employees of ANC Rental were canceled. In addition, the Company's Board
of Directors, in accordance with the terms of the stock option plans, authorized
the adjustment of employee stock options to reflect the market effect on the
Company's common stock resulting from the spin-off. All other terms of the
existing options, including the vesting schedules, were unchanged.
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AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
A summary of stock option and warrant transactions is as follows for the
years ended December 31:
2001 2000 1999
------------------ ------------------ ------------------
WEIGHTED- WEIGHTED- WEIGHTED-
AVERAGE AVERAGE AVERAGE
EXERCISE EXERCISE EXERCISE
SHARES PRICE SHARES PRICE SHARES PRICE
------ --------- ------ --------- ------ ---------
Options and warrants outstanding at beginning of
period........................................ 57.2 $12.74 50.9 $15.84 54.6 $12.52
Granted......................................... 8.0 $10.92 12.5 $ 6.91 17.0 $15.80
Exercised....................................... (.9) $ 9.26 (.6) $ 2.16 (7.8) $ 3.73
Canceled........................................ (6.7) $11.15 (10.2) $14.14 (12.9) $13.90
Spin-off adjustment............................. -- $ -- 4.6 $(1.57) -- $ --
---- ----- -----
Options and warrants outstanding at end of
period........................................ 57.6 $12.69 57.2 $12.74 50.9 $15.84
==== ===== =====
Options and warrants exercisable at end of
period........................................ 37.4 $14.01 32.7 $14.59 15.4 $18.58
Options available for future grants............. 23.8 25.3 24.1
The following table summarizes information about outstanding and
exercisable stock options at December 31, 2001:
OUTSTANDING EXERCISABLE
--------------------------------- ------------------
WEIGHTED-
AVERAGE WEIGHTED- WEIGHTED-
REMAINING AVERAGE AVERAGE
EXERCISE PRICE OR CONTRACTUAL EXERCISE EXERCISE
RANGE OF EXERCISE PRICES SHARES LIFE (YRS.) PRICE SHARES PRICE
------------------------ ------ ------------ --------- ------ ---------
$ 1.02-$11.05........................ 19.6 8.49 $ 8.92 4.5 $ 8.10
$11.06-$13.26........................ 19.9 4.15 $11.47 18.1 $11.44
$13.27-$35.88........................ 18.1 5.72 $18.14 14.8 $18.94
---- -----