Dick's Sporting Goods 2013 Annual Report Download - page 83

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57
DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(3) The risk-free interest rate is based on the implied yield available on U.S. Treasury constant maturity interest rates
whose term is consistent with the expected life of the stock options.
(4) The Company declared its first dividend in December 2011. Options granted subsequent to the declaration of the initial
dividend reflect the anticipated future cash dividend payouts.
The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market
conditions and experience.
The stock option activity from January 29, 2011 through February 1, 2014 is presented in the following table:
Shares
Subject to
Options
Weighted
Average
Exercise
Price per
Share
Weighted
Average
Remaining
Contractual
Life (Years)
Aggregate
Intrinsic
Value (in
thousands)
Outstanding, January 29, 2011 13,693,877 $ 16.91 4.13 $ 258,697
Granted 639,047 39.78
Exercised (2,420,960) 13.67
Forfeited / Expired (253,875) 27.75
Outstanding, January 28, 2012 11,658,089 $ 18.60 3.45 $ 262,995
Granted 581,665 48.35
Exercised (5,431,053) 14.38
Forfeited / Expired (99,977) 25.48
Outstanding, February 2, 2013 6,708,724 $ 24.50 3.60 $ 157,380
Granted 682,344 47.31
Exercised (2,154,201) 20.18
Forfeited / Expired (282,820) 41.57
Outstanding, February 1, 2014 4,954,047 $ 28.55 3.19 $ 118,784
Exercisable, February 1, 2014 3,617,457 $ 22.87 2.46 $ 107,179
Vested and expected to vest, February 1, 2014 4,822,326 $ 28.05 3.12 $ 118,008
The aggregate intrinsic value reported in the table above is based on the Company's closing stock prices for the last business
day of the period indicated. The total intrinsic value for stock options exercised during 2013, 2012 and 2011 was $67.2 million,
$186.5 million and $61.3 million, respectively. The total fair value of options vested during 2013, 2012 and 2011 was $14.9
million, $7.1 million and $12.2 million, respectively. The nonvested stock option activity for the year ended February 1, 2014 is
presented in the following table:
Shares
Subject to
Options
Weighted
Average
Grant Date
Fair Value
Nonvested, February 2, 2013 2,616,875 $ 11.88
Granted 682,344 18.31
Vested (1,684,187) 8.85
Forfeited (278,442) 17.07
Nonvested, February 1, 2014 1,336,590 $ 17.90
As of February 1, 2014, unrecognized stock-based compensation expense related to nonvested stock options was approximately
$14.5 million, net of estimated forfeitures, which is expected to be recognized over a weighted average period of approximately
2.28 years.