Comfort Inn 2005 Annual Report Download - page 51

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CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Restricted Stock.
The following table is a summary of activity related to restricted stock grants to non-employee directors and
key employees for the year ended December 31,
2005 2004 2003
Restricted Shares Granted ........................................ 265,589 408,920 14,856
Weighted Average Grant Date Fair Value Per Share ................... $ 31.97 $ 19.50 $ 12.12
Aggregate Grant Date Fair Value ($000) ............................ $ 8,491 $ 7,973 $ 180
Restricted Shares Forfeited ....................................... 29,150 4,110 —
Vesting Service Period of Shares Granted ........................... 3-5 years 3-5 years 3 years
The Company incurred compensation expense totaling $3.5 million, $2.5 million and $0.9 million related to
the vesting of restricted stock during the years ended December 31, 2005, 2004 and 2003, respectively.
Stock Options.
A summary of the stock option activity under the Company’s stock option plan is as follows as of
December 31, 2005, 2004 and 2003:
2005 2004 2003
Options Shares
Weighted
Average
Exercise Price Shares
Weighted
Average
Exercise Price Shares
Weighted
Average
Exercise Price
Outstanding at beginning of year . . . 5,440,414 $ 8.32 6,591,480 $ 8.17 6,223,982 $ 7.52
Granted....................... 355,384 29.92 20,000 20.75 1,373,934 10.26
Exercised ..................... (1,928,903) 7.37 (1,114,214) 7.57 (925,044) 6.79
Cancelled ..................... (113,894) 9.98 (56,852) 9.56 (81,392) 9.40
Outstanding at end of year .... 3,753,001 $10.81 5,440,414 $ 8.32 6,591,480 $ 8.17
Options exercisable at year end .... 2,200,008 $ 7.95 3,268,150 $ 7.25 3,346,258 $ 6.86
Weighted average fair value of
options granted during the year
(grant date price equals
market) ..................... $10.11 $ 7.00 $ 4.33
The following table summarizes information about stock options outstanding at December 31, 2005:
Options Outstanding Options Exercisable
Range of Exercise Prices
Number
Outstanding at
12/31/05
Weighted Average
Remaining
Contractual Life
Weighted
Average
Exercise Price
Number
Exercisable
at 12/31/05
Weighted
Average
Exercise Price
$ 4.51to$ 6.50 ............... 803,676 2.4 years $ 6.10 803,676 $ 6.10
$ 6.51to$ 8.82 ............... 872,277 3.7 years 7.89 812,055 7.92
$ 8.83 to $15.00 ............... 1,701,664 6.5 years 10.43 580,277 10.46
$15.01 to $21.17 ............... 20,000 8.1years 20.75 4,000 20.75
$21.18 to $30.00 ............... 355,384 9.1 years 29.92 — —
3,753,001 5.3 years $10.81 2,200,008 $ 7.95
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