Callaway 2005 Annual Report Download - page 92

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CALLAWAY GOLF COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Options
The Company had the following two stock option plans under which shares were available for grant at
December 31, 2005: The 2004 Equity Incentive Plan (the “2004 Plan”) and the 2001 Non-Employee Directors
Stock Option Plan (the “2001 Directors Plan”).
The 2004 Plan permits the granting of options or other equity-based awards to the Company’s officers,
employees and consultants. Under the 2004 Plan, options may not be granted at option prices that are less than
fair market value at the date of grant. The 2001 Directors Plan is a shareholder-approved plan. It provides for
automatic grants of stock options upon a non-employee Director’s initial appointment to the Company’s Board of
Directors and thereafter annually if the director will be serving for at least another year. All such grants are made
at prices based on the market value of the stock at the date of grant.
The following table presents shares authorized, available for future grant and outstanding under each of the
Company’s plans as of December 31, 2005:
Authorized Available Outstanding
(In thousands)
1991 Stock Incentive Plan .............................. 10,000 — 102
Promotion, Marketing and Endorsement Stock Incentive
Plan ............................................. 3,560 — 660
1995 Employee Stock Incentive Plan ..................... 10,800 — 4,326
1996 Stock Option Plan ................................ 9,000 — 2,662
1998 Stock Incentive Plan .............................. 500 — 67
2001 Directors Plan ................................... 500 282 218
2004 Plan ........................................... 8,000 2,820 2,123
Non-Employee Directors Stock Option Plan ................ 840 — 136
Total ............................................... 43,200 3,102 10,294
Under the Company’s stock option plans, outstanding options generally vest over periods ranging from 0 to
5 years from the grant date and generally expire up to 12 years after the grant date.
The following summarizes stock option transactions for the years ended December 31, 2005, 2004 and
2003:
Year Ended December 31,
2005 2004 2003
Shares
Weighted-
Average
Exercise Price Shares
Weighted-
Average
Exercise Price Shares
Weighted-
Average
Exercise Price
(in thousands, except per share data)
Outstanding at beginning of year .................. 12,669 $ 18.41 13,238 $ 19.04 14,936 $ 20.19
Granted ...................................... 2,183 $ 13.28 2,875 $ 13.89 1,820 $ 12.73
Exercised ..................................... (858) $ 12.70 (1,132) $ 13.84 (1,174) $ 11.71
Canceled ..................................... (3,700) $ 20.09 (2,312) $ 22.21 (2,344) $ 25.18
Outstanding at end of year ........................ 10,294 $ 17.19 12,669 $ 18.41 13,238 $ 19.04
Options exercisable at end of year .................. 7,056 $ 18.45 9,154 $ 19.57 9,922 $ 20.56
Price range of outstanding options ................. $9.88 - $40.00 $5.25 -$40.00 $5.25 -$40.00
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