Circuit City 2004 Annual Report Download - page 54

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Shares Exercise Price Shares Exercise Price Shares Exercise Price
------ -------------- ------ -------------- ------ -------------
Outstanding at beginning of year. 2,821,302 $ 3.70 2,091,315 $ 5.01 1,675,491 $ 6.05
Granted ......................... 780,267 $ 5.38 1,072,700 $ 1.80 591,375 $ 3.05
Exercised ....................... (144,168) $ 2.28 (184,341) $ 2.27
Cancelled ....................... (216,150) $ 6.82 (158,372) $ 9.68 (175,551) $ 8.36
-------- -------- --------
Outstanding at end of year ...... 3,241,251 $ 3.96 2,821,302 $ 3.70 2,091,315 $ 5.01
========= ========= =========
Options exercisable at year end.. 1,756,517 1,483,287 1,093,294
Weighted average fair value per
option granted during the year $1.61 $0.81 $0.67
As of December 31, 2004:
Range of Weighted-Average Weighted-Average Weighted-Average
Exercise Number Remaining Exercise Number Exercise
Price Outstanding Contractual Life Price Exercisable Price
----------------- ----------- ---------------- ---------------- ----------- ----------------
$ 1.76 to $ 5.00 1,934,184 7.44 $ 2.14 1,159,633 $ 2.37
$ 5.01 to $ 15.00 1,248,967 7.68 $ 6.15 538,784 $ 7.17
$ 15.01 to $ 18.41 58,100 1.46 $ 17.63 58,100 $ 17.63
------ ------ -------
$ 1.76 to $ 18.41 3,241,251 7.42 $ 3.96 1,756,517 $ 4.35
========= =========
Years Ended December 31 2004 2003 2002
----------------------- ---- ---- ----
United States $33,268 $18,287 $(5,948)
Foreign (16,712) (10,726) (2,303)
------- ------- ------
Total $16,556 $7,561 $(8,251)
======= ====== =======
Years Ended December 31 2004 2003 2002
----------------------- ---- ---- ----
Current:
Federal $8,622 $5,247 $(3,037)
State 565 709 758
Foreign (442) 1,214 4,715
---- ----- -----
Total current 8,745 7,170 2,436
During the year ended December 31, 2004, the Company granted 1,000,000 restricted stock units under the 1999
Plan to a key employee. A restricted stock unit represents the right to receive a share of the Company's common
stock. The grant is conditioned upon shareholder approval at the next annual meeting (which approval has been
assured as a result of a concurrent signed agreement whereby the Company's three controlling shareholders
agreed to vote for approval) and satisfaction of certain performance conditions based on earnings before interest,
taxes and depreciation and amortization expense in fiscal 2004, which have been met. The restricted stock units
vest at the rate of 20% on May 31, 2005 and 10% per year on April 6, 2006 and each year thereafter. The
restricted stock units have none of the rights as other shares of common stock until common stock is distributed,
other than rights to cash dividends. Compensation expense for restricted stock awards is recognized based on the
intrinsic value method defined by APB 25. The total market value of the shares granted has been recorded as
"Unearned Restricted Stock Compensation" and is reported as a separate component in the consolidated
statements of shareholders' equity and is being expensed over the vesting period.
10.
INCOME TAXES
The components of income (loss) before income taxes are as follows (in thousands):
The provision (benefit) for income taxes consists of the following (in thousands):