Big Lots 2012 Annual Report Download - page 140

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60
BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 7 — Share-Based Plans (Continued)
on historical and current implied volatilities from traded options on our common shares. The dividend yield on
our common shares is assumed to be zero since we have not paid dividends and have no current plans to do so
in the future. The risk-free rate is based on U.S. Treasury security yields at the time of the grant. The expected
life is determined from the binomial model, which incorporates exercise and post-vesting forfeiture assumptions
based on analysis of historical data.
The weighted-average fair value of stock options granted and assumptions used in the stock option pricing
model for each of the respective periods were as follows:
2012 2011 2010
Weighted-average fair value of stock options granted ............... $14.15 $14.43 $13.64
Risk-free interest rates ....................................... 0.6% 1.8% 2.2%
Expected life (years) ......................................... 4.2 4.2 4.2
Expected volatility .......................................... 41.1 % 41.7% 45.6%
Expected annual forfeiture rate ................................. 3.0% 1.5% 1.5%
The following table summarizes information about our stock options outstanding and exercisable at February 2,
2013:
Range of Prices Options Outstanding Options Exercisable
Greater
Than
Less
Than or
Equal to
Options
Outstanding
Weighted-
Average
Remaining
Life
(Years)
Weighted-
Average
Exercise
Price
Options
Exercisable
Weighted-
Average
Exercise
Price
$10.01 $20.00 591,773 2.8 $16.92 396,147 $16.65
20.01 30.00 269,438 1.9 25.55 265,688 25.50
30.01 40.00 710,375 4.4 35.76 249,373 35.83
$40.01 $50.00 1,457,500 5.6 42.65 137,625 41.24
3,029,086 4.4 $34.49 1,048,833 $26.68
A summary of the annual stock option activity for fiscal years 2010, 2011, and 2012 is as follows:
Number of
Options
Weighted
Average
Exercise
Price Per
Share
Weighted
Average
Remaining
Contractual
Ter m
(years)
Aggregate
Intrinsic
Value
(000’s)
Outstanding stock options at January 30, 2010 ...... 4,496,633 $19.46
Granted ..................................... 997,500 35.92
Exercised .................................... (1,807,850) 17.98
Forfeited .................................... (107,600) 26.10
Outstanding stock options at January 29, 2011 ...... 3,578,683 $24.59
Granted ..................................... 918,500 40.85
Exercised .................................... (500,085) 20.81
Forfeited .................................... (320,675) 33.84
Outstanding stock options at January 28, 2012 ...... 3,676,423 $28.36
Granted ..................................... 982,000 43.23
Exercised .................................... (1,406,262) 23.67
Forfeited .................................... (223,075) 40.18
Outstanding stock options at February 2, 2013 ...... 3,029,086 $34.49 4.4 $10,991
Vested or expected to vest at February 2, 2013 ...... 2,858,848 $34.31 4.4 $10,653
Exercisable at February 2, 2013 .................. 1,048,833 $26.68 3.0 $ 8,035