Barnes and Noble 2001 Annual Report Download - page 40

Download and view the complete annual report

Please find page 40 of the 2001 Barnes and Noble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 52

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52

Had compensation cost for the Company’s stock option
grants been determined based on the fair value of the
stock at the grant dates, the Company’s net earnings
and diluted earnings per share for fiscal 2001, 2000
and 1999, would have been reduced by approximately
$9,521 or $0.12 per share, $8,529 or $0.13 per share,
and $6,298 or $0.09 per share, respectively.
Because the application of the pro forma disclosure
provision of SFAS 123 are required only to be applied
to grants of options made by the Company during fiscal
1995 and after, the above pro forma amounts may not
be representative of the effects of applying SFAS 123 to
future years.
The weighted-average fair value of the options granted
during fiscal 2001, 2000 and 1999 were estimated at
$10.13, $7.86 and $10.00, respectively, using the Black-
Scholes option-pricing model with the following
assumptions: volatility of 35 percent, risk-free interest
rate of 4.86 percent in fiscal 2001, 6.50 percent in fiscal
2000, and 5.90 percent in fiscal 1999, and an expected
life of six years.
A summary of the status of the Company’s stock
options is presented below:
Weighted-Average
(Thousands of shares) Shares Exercise Price
Balance, January 30, 1999 1 0 , 2 78 $ 1 6 . 22
Granted 2 ,1 4 8 2 2 . 3 1
Exercised ( 795 ) 1 1.39
Forfeited ( 488 ) 2 6 . 9 1
Balance, January 29, 2000 1 1 ,1 4 3 1 7. 2 7
Granted 2 , 67 5 1 7.04
Exercised ( 995 ) 1 3 .64
Forfeited ( 807 ) 22.76
Balance, February 3, 2001 1 2 , 0 1 6 1 7.15
Granted 2,204 1 8 .24
Exercised ( 2 ,1 6 3 ) 2 1. 8 1
Forfeited ( 362 ) 23.76
Balance, February 2, 2002 1 1 ,695 $ 1 8 .04
The following table summarizes information as of February 2, 2002 concerning outstanding and exercisable options:
Options Outstanding Options Exercisable
Weighted- Weighted- Weighted-
Number Average Average Number Average
Outstanding Remaining Exercise Exercisable Exercise
Range of Exercise Prices (000s) Contractual Life Price (000s) Price
$ 3.21 - $ 3.77 339 1 .40 $ 3 . 5 9 339 $ 3.59
$ 10.00 - $ 16.75 5,829 3 . 5 5 $ 1 3.42 4, 3 1 9 $ 1 2.26
$ 17.13 - $ 24.25 4,355 7.95 $ 2 1.95 1,405 $ 20. 37
$ 26.50 - $ 34.75 1 ,1 7 2 6.60 $ 3 0 .74 626 $ 32 .1 0
$ 3.21 - $ 34.75 11,695 5.43 $ 1 8 .04 6,689 $ 15 .38
N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S c o n t i n u e d
40