Coach 2006 Annual Report Download - page 37
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Net sales $ 66,463 $ 76,416 $ 58,719
Income before provision for income taxes 44,483 49,897 36,903
Income from discontinued operations 27,136 30,437 21,965
The consolidated balance sheet at June 30, 2007 includes approximately $71 of accounts receivable, net and approximately $2,254 of
accrued liabilities, related to the corporate accounts business. The net book value of the fixed assets related to the corporate accounts
business was $0 prior to the exiting of the business. Accordingly, no gain or loss was recognized upon disposal of the fixed assets. The
Consolidated Statement of Cash Flows includes the corporate accounts business for all periods presented.
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The Company maintains several share-based compensation plans which are more fully described below. The following table shows the
total compensation cost charged against income for these plans and the related tax benefits recognized in the income statement:
Share-based compensation expense $ 56,726 $ 69,190 $ 55,880
Income tax benefit related to share-based compensation expense 22,071 27,191 21,793
The above amounts include $486, $1,290 and $797 of share-based compensation expense and $187, $503 and $311 of related
income tax benefit related to discontinued operations in fiscal years 2007, 2006 and 2005, respectively.
Coach maintains the 2000 Stock Incentive Plan, the 2000 Non-Employee Director Stock Plan and the 2004 Stock Incentive Plan to
award stock options, shares and other forms of equity compensation to certain members of Coach management and the outside members of
its Board of Directors. These plans were approved by Coach’s stockholders. The exercise price of each stock option equals the market price
of Coach’s stock on the date of grant and generally has a maximum term of 10 years. Options generally vest ratably over three years. Share
awards are restricted and subject to forfeiture until the retention period is completed. The retention period is generally three years.
For options granted under Coach’s stock option plans prior to July 1, 2003, an active employee can receive a replacement stock option
equal to the number of shares surrendered upon a stock-for-stock exercise. The exercise price of the replacement option equals 100% of the
market value at the date of exercise of the original option and will remain exercisable for the remaining term of the original option.
Replacement stock options generally vest six months from the grant date. Replacement stock options of 1,462, 5,378 and 7,029 were
granted in fiscal 2007, 2006 and 2005, respectively.
Stock Options
A summary of option activity under the Coach stock option plans as of June 30, 2007 and changes during the year then ended is as
follows:
Outstanding at July 1, 2006 30,817 $ 23.48
Granted 7,727 33.44
Exercised (8,272) 18.25
Forfeited or expired (896) 30.10
Outstanding at June 30, 2007 29,376 $ 27.36 6.70 $ 589,214
Exercisable at June 30, 2007 12,309 $ 24.67 5.09 $ 279,613
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