Cash America 2007 Annual Report Download - page 103

Download and view the complete annual report

Please find page 103 of the 2007 Cash America 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 126

  • 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
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
83
A summary of the Company’s stock option activity for each of the three years ended December 31
is as follows (shares in thousands):
2007 2006 2005
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Shares Price Shares Price Shares Price
Outstanding at beginning of year. 740 $ 9.76 1,403 $ 10.31 1,633 $ 10.26
Exercised ..................................... (70) 10.89 (663) 10.93 (225) 9.78
Forfeited ...................................... ʊ ʊ ʊ ʊ (5) 17.14
Outstanding at end of year........... 670 $ 9.65 740 $ 9.76 1,403 $ 10.31
Exercisable at end of year............ 670 $ 9.65 740 $ 9.76 1,358 $ 10.09
Stock options outstanding and exercisable as of December 31, 2007, are summarized below (shares
in thousands):
Options Outstanding Options Exercisable
Weighted Average Weighted
Weighted Years of Average
Range of Number Average Remaining Number Exercise
Exercise Prices Outstanding Exercise Price Contractual Life Exercisable Price
$ 5.94 to $ 9.40... 156 7.85 4.0 156 7.85
$ 9.41 to $12.63... 485 9.85 3.3 485 9.85
$12.64 to $17.14... 29 15.85 3.1 29 15.85
$ 5.94 to $17.14... 670 9.65 3.4 670 9.65
The outstanding stock options (all exercisable) at December 31, 2007 had an aggregate intrinsic
value of $15.2 million and the stock options exercised during 2007 had an aggregate intrinsic value of $1.8
million. Income tax benefits realized from the exercise of stock options for the year ended December 31,
2007 and 2006 were $600,000 and $5.4 million, respectively. The portion of tax benefits recorded as
increases to additional paid-in capital was $600,000 for the year ended December 31, 2007, which
represented the tax benefits realized upon exercise of stock options in excess of the amounts recognized in
the consolidated financial statements for 2007. No compensation expense related to the stock options was
recorded for 2005, therefore, all of the tax benefits recorded upon exercise of stock options were recorded as
increases to additional paid-in capital.
Restricted Stock Units x The Company has granted restricted stock units (“RSUs, or singularly, RSU”) to
Company officers and to the non-management members of the Board of Directors annually since 2003.
RSUs granted in December 2003 and January 2004 were granted under the 1994 Long-Term Incentive Plan;
subsequent RSUs have been granted under the 2004 Long-Term Incentive Plan. Each vested RSU entitles
the holder to receive a share of the common stock of the Company. For Company officers, the vested RSUs
are to be issued upon vesting or, for certain awards, upon termination of employment with the Company.
For directors, vested RSUs will be issued upon the director’s retirement from the Board. At December 31,
2007, the outstanding RSUs granted to Company officers had vesting periods ranging from 4 to 12 years,
director RSUs had vesting periods ranging from 1 to 4 years. The amount attributable to RSU grants is
amortized to expense over the vesting periods.
Compensation expense totaling $3.1 million ($2.0 million net of related taxes), $2.2 million ($1.5
million net of related taxes) and $1.7 million ($1.1 million net of related taxes) was recognized for 2007,