Dick's Sporting Goods 2004 Annual Report Download - page 56

notes to consolidated financial statements continued
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Stock Option Plans At January 29, 2005, the aggregate number of common shares reserved for grant under the Company’s 2002 Stock
Option Plan (the “Plan”) is 19,866,000 shares. The stock option activity during the fiscal years ended is as follows:
Weighted Shares Subject Weighted
Shares Subject Average Exercise to Exercisable Average Exercise
to Options Price Per Share Options Price Per Share
Outstanding, February 2, 2002 11,831,738 $ 2.08 8,014,596 $ 2.03
Granted 4,718,538 6.70 – –
Exercised (393,340) 2.05 – –
Cancelled (397,734) 2.17 – –
Outstanding, February 1, 2003 15,759,202 $ 3.46 8,909,490 $ 2.05
Granted 4,776,906 23.16 – –
Exercised (6,425,556) 2.10 – –
Cancelled (469,326) 3.70 – –
Outstanding, January 31, 2004 13,641,226 $ 10.99 4,607,322 $ 2.58
Granted 380,010 31.60 – –
Exercised (1,532,121) 3.24 – –
Cancelled (384,705) 15.25 – –
Outstanding, January 29, 2005 12,104,410 $ 12.47 4,242,361 $ 5.91
Stock options generally vest over four years in 25% increments from the date of grant and expire 10 years from the date of grant. As of
January 29, 2005, there were 10,461,681 shares of common stock available for issuance pursuant to future stock option grants.
Additional information regarding options outstanding as of January 29, 2005, is as follows:
Options Outstanding Options Exercisable
Weighted Average Weighted Weighted
Remaining Average Average
Contractual Exercise Exercise
Range of Exercise Prices Shares Life (Years) Price Shares Price
$1.08 - $2.17 3,060,038 4.90 $ 1.99 3,011,528 $ 1.99
$6.00 - $10.48 4,095,032 7.75 6.64 562,850 8.01
$15.29 - $22.87 2,564,972 8.70 21.55 326,917 18.28
$25.07 - $36.04 2,384,368 8.99 26.19 341,066 25.23
$1.08 - $36.04 12,104,410 7.48 $ 12.47 4,242,361 $ 5.91
Employee Stock Purchase Plan The Company has an employee stock purchase plan which provides that eligible employees may purchase
shares of the Company’s common stock. There are two offering periods in a fiscal year, one ending on June 30 and the other on December 31,
or as otherwise determined by the Company’s compensation committee. The employee’s purchase price is 85% of the lesser of the fair
market value of the stock on the first business day or the last business day of the semi-annual offering period. Employees may purchase
shares having a fair market value of up to $25,000 for all purchases ending within the same calendar year. No compensation expense is
recorded in connection with the plan. The total number of shares issuable under the plan is 2,310,000.
There were 137,240 and 238,906 shares issued under the plan during fiscal 2004 and 2003 and 1,066,866 shares available for
future issuance.
Common Stock, Class B Common Stock and Preferred Stock During fiscal 2002, the Company amended its corporate charter to, among
other things, provide for the authorization of the issuance of up to 100,000,000 shares of common stock, 20,000,000 shares of Class B
common stock, and 5,000,000 shares of preferred stock. Upon completion of the Company’s initial public offering in fiscal 2002, the
Company has two classes of common stock, the existing common stock and a new class of Class B common stock. The holders of common
stock generally have rights identical to holders of Class B common stock, except that holders of common stock are entitled to one vote per
share and holders of Class B common stock are entitled to ten votes per share. A related party and relatives of the related party hold all of
the Class B common stock. These shares can only be held by members of this group and are not publicly tradeable. Class B common stock
can be converted to common stock at the holder’s option.