Barnes and Noble 2005 Annual Report Download - page 40

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BNBN Stock Option Plans
Bn.com had one incentive plan (the 1999 Plan) under
which BNBN stock options were granted to key
officers, employees, consultants, advisors, and
managers of bn.com and its subsidiaries and affiliates.
The 1999 Plan was administered by the Compensation
Committee of bn.com’s Board of Directors. The 1999
Plan allowed bn.com to grant options to purchase
25,500,000 shares of bn.com’s Class A Common Stock.
Generally, options were granted at fair market value,
began vesting one year after grant in 25% increments,
were to expire 10 years from issuance and were
conditioned upon continual employment during the
vesting period.
Subsequent to the May 27, 2004 Merger, the holders of
bn.com’s outstanding common stock, other than that
owned by the Company and its subsidiaries, received
$3.05 in cash for each share that they owned and the
1999 Plan was terminated.
A summary of the status of bn.com’s BNBN stock
options as of bn.com’s fiscal year-ends is presented
below:
Shares Weighted-Average
(000s) Exercise Price
Balance, December 31, 2002
18,172 3.11
Granted
2,421 1.48
Exercised
(4,478) 1.29
Forfeited
(1,173) 4.46
Balance, December 31, 2003
14,942 3.29
Granted
44 2.93
Exercised
(8,495) 1.26
Forfeited
(6,491) 5.88
Balance, May 27, 2004
—
[NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS continued ]
39
2005 Annual Report Barnes & Noble, Inc.
The following table summarizes information as of January 28, 2006 concerning outstanding and exercisable options:
Options Outstanding Options Exercisable
Number Weighted-Average Weighted- Number Weighted-
Outstanding Remaining Average Exercisable Average
Range of Exercise Prices (000s) Contractual Life Exercise Price (000s) Exercise Price
$11.27 - $15.06 2,385 6.33 $ 12.46 1,117 $ 12.58
$16.10 - $20.84 3,316 5.03 $ 17.48 2,950 $ 17.30
$21.67 - $24.55 3,668 7.94 $ 22.02 2,333 $ 21.96
$31.96 - $37.85 400 9.16 $ 33.37 — $ —
$11.27 - $37.85 9,769 6.61 $ 18.61 6,400 $ 18.17
The Company granted 443,400 and 50,000 restricted shares with grant date fair values of $15,020 and $1,540 in fiscal
2005 and 2004, respectively. The fair value of these restricted shares is being recorded as compensation expense on a
straight-line basis over the related vesting periods, which range from one to four years.