Avnet 2007 Annual Report Download - page 72

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Stock options
Option grants under the 2006 Plan have a contractual life of ten years, vest 25% on each anniversary of the
grant date, commencing with the first anniversary, and allows for a minimum exercise price of 100% of fair market
value at the date of grant. Pre-tax compensation expense associated with stock options during fiscal 2007 and 2006
were $8,356,000 and $10,011,000, respectively.
The following is a summary of the changes in outstanding options for fiscal 2007:
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life
Aggregate
Intrinsic Value
Outstanding at July 1, 2006 ............. 8,070,212 $20.75 61 months
Granted ............................ 363,896 19.17 110 months
Exercised ........................... (4,020,392) 21.20 41 months
Forfeited or expired ................... (500,858) 25.49 9 months
Outstanding at June 30, 2007 ............ 3,912,858 19.53 68 months $340,064
Exercisable at June 30, 2007 ............ 2,564,098 19.71 55 months $340,064
The weighted-average grant-date fair values of stock options granted during fiscal 2007, 2006, and 2005 were
$8.88, $11.86, and $8.40, respectively. The total intrinsic values of stock option exercised during fiscal 2007, 2006
and 2005 was $524,000, $684,000 and $109,000, respectively.
The following is a summary of the changes in non-vested stock options for the fiscal year ended June 30, 2007:
Shares
Weighted
Average
Grant-Date
Fair Value
Non-vested stock options at July 1, 2006 . . . ....................... 2,018,856 $8.61
Granted ................................................... 363,896 8.88
Vested .................................................... (991,562) 7.97
Forfeited .................................................. (42,430) 8.29
Non-vested stock options at June 30, 2007 . . ....................... 1,348,760 9.17
As of June 30, 2007, there was $12,371,000 of total unrecognized compensation cost related to non-vested
awards granted under the option plans, which is expected to be recognized over a weighted-average period of
3.0 years. The total fair values of shares vested during fiscal 2007, 2006 and 2005 were $7,901,000, $10,689,000
and $12,548,000, respectively.
Cash received from option exercises during fiscal 2007, 2006 and 2005 totaled $54,357,000, $30,879,000 and
$3,231,000, respectively. The impact of these cash receipts is included in “Other, net, financing activities” in the
accompanying consolidated statements of cash flows.
Incentive shares
Delivery of incentive shares, and the associated compensation expense, is spread equally over a five-year
period and is subject to the employee’s continued employment by the Company. As of June 30, 2007, 982,795 shares
previously awarded have not yet been delivered. Pre-tax compensation expense associated with this program was
$8,231,000, $4,586,000 and $975,000 for fiscal years 2007, 2006 and 2005, respectively.
72
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)