CompUSA 2007 Annual Report Download - page 91

Download and view the complete annual report

Please find page 91 of the 2007 CompUSA 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 107

  • 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

48
Stock options
The following table presents the weighted-average assumptions used to estimate the fair value of options granted in 2007,
2006 and 2005:
2007 2006 2005
Expected annual dividend yield 0% 0% 0%
Risk-free interest rate 4.93% 4.76% 4.5%
Expected volatility 71.2% 78.2% 79%
Expected life in years 6.2 6.0 5.2
The following table summarizes information concerning outstanding and exercisable options:
Weighted Average
2007 2006 2005
Shares Exercise
Price
Shares Exercise
Price
Shares Exercise
Price
Outstanding at beginning of year 2,629,076 $ 4.69 2,657,419 $ 3.93 3,241,251 $ 3.96
Granted 699,050 $ 19.45 479,334 $ 8.01 75,000 $ 6.25
Exercised (545,815) $ 5.19 (480,203) $ 3.33 (328,374) $ 2.37
Cancelled or expired (126,374) $15.64 (27,474) $12.84 (330,458) $ 6.35
Outstanding at end of year 2,655,937 $ 7.95 2,629,076 $ 4.69 2,657,419 $ 3.93
Options exercisable at year end 1,645,639 1,891,426 1,891,155
Weighted average fair value per
option granted during the year
$13.19
$ 5.64
$ 4.21
The total intrinsic value of options exercised and share based payments made was $6,517,000, $3,501,000 and $679,000,
respectively, for the years ended December 31 2007, 2006 and 2005.
The following table summarizes information about options vested and exercisable or nonvested that are expected to vest
(nonvested outstanding less expected forfeitures) at December 31, 2007:
Range of Exercise Prices
Number
Exercisable
Weighted
Average
Exercise
Price
Weighted Average
Remaining
Contractual Life
Aggregate
Intrinsic
Value (in
thousands)
$ 1.76 to $ 5.00 996,682 $ 2.11 4.67 $18,345
$ 5.01 to $ 15.00 1,005,330 $ 6.40 6.50 14,282
$ 15.01 to $ 20.00 486,338 $19.01 9.41 650
$ 20.01 to $ 20.15 100,000 $20.15 9.11 37
$ 1.76 to $ 20.15 2,588,350 $ 7.95 6.44 $33,314
The aggregate intrinsic value in the tables above represents the total pretax intrinsic value (the difference between the
closing stock price on the last day of trading in the year December 31, 2007 and the exercise price) that would have been
received by the option holders had all options been exercised on December 31, 2007. This value will change based on the
fair market value of the Company’s common stock.
The following table reflects the activity for all unvested stock options during the year ended December 31, 2007:
For Shares Weighted Average
Grant-Date Fair Value
Unvested at January 1, 2007 737,650 $ 3.71
Granted 699,050 $13.19
Vested (270,903) $ 2.48
Forfeited (67,999) $ 4.68
Unvested at December 31, 2007 1,097,798 $ 9.99