Circuit City 2005 Annual Report Download - page 59

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The following table summarizes information for the three years ended December 31, 2005 concerning currently
outstanding and exercisable options:
2005 2004 2003
Shares
Weighted-
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
Outstanding at beginning of year
3,241,251
$
3.96
2,821,302
$
3.70
2,091,315
$
5.01
Granted
$
6.25
780,267
$
5.38
1,072,700
$
1.80
Exercised
(328,374
)
$
2.37
(144,168
)
$
2.28
(184,341
)
$
2.27
Cancelled
(330,458
)
$
6.35
(216,150
)
$
6.82
(158,372
)
$
9.68
Outstanding at end of year
2,657,419
$
3.93
3,241,251
$
3.96
2,821,302
$
3.70
Options exercisable at year end
1,891,155
1,756,517
1,483,287
Weighted average fair value per
option granted during the year
$4.21
$1.61
$0.81
As of December 31, 2005:
Range of
Exercise
Price Number
Outstanding
Weighted-
Average
Remaining
Contractual Life
Weighted-
Average
Exercise
Price Number
Exercisable
Weighted-Average
Exercise
Price
$ 1.76 to $ 5.00
1,518,502
6.51
$2.12
1,237,940
$2.20
$5.01 to $15.00
1,110,217
7.20
$6.04
624,515
$6.48
$15.01 to $18.41
28,700
1.28
$17.72
28,700
$17.72
$1.76 to $18.41
2,657,419
6.74
$3.93
1,891,155
$3.85
During the year ended December 31, 2004, the Company granted 1,000,000 restricted stock units under the 1999
Plan to a key employee who is also a Company director. A restricted stock unit represents the right to receive a
share of the Company’s common stock. The restricted stock units vest at the rate of 20% on May 31, 2005 and
10% per year on April 1, 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):
Years Ended December 31 2005 2004 2003
United States
$
$
$
Foreign
(6,038
)
(16,712
)
(10,726
)
Total
$
$
$
7,561