Dollar General 2009 Annual Report Download - page 111

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DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
11. Share-based payments (Continued)
A summary of Time Options activity during the Successor period ended January 29, 2010 is as
follows:
Remaining Intrinsic
Options Average Contractual Value
Issued Exercise Price Term in Years (in thousands)
Balance, January 30, 2009 ................. 6,021,511 $ 8.75
Granted .............................. 796,758 13.25
Exercised ............................. — —
Canceled ............................. (695,217) 8.00
Balance, January 29, 2010 ................. 6,123,052 $ 8.68 8.1 $90,675
Vested or expected to vest at January 29, 2010 . . 5,385,047 $ 8.63 8.1 $80,035
Exercisable at January 29, 2010 ............. 2,237,491 $ 7.41 8.0 $32,071
The weighted average grant date fair value of Time Options granted during 2009, 2008 and the
2007 Successor period was $6.73, $4.17, and $4.64, respectively.
A summary of Performance Options activity during the Successor period ended January 29, 2010 is
as follows:
Remaining Intrinsic
Options Average Contractual Value
Issued Exercise Price Term in Years (in thousands)
Balance, January 30, 2009 ................. 6,028,082 $ 8.75
Granted .............................. 796,758 13.25
Exercised ............................. (4,545) 8.00
Canceled ............................. (568,672) 8.00
Balance, January 29, 2010 ................. 6,251,623 $ 8.67 8.1 $92,667
Vested or expected to vest at January 29, 2010 . . 5,387,396 $ 8.62 8.1 $80,123
Exercisable at January 29, 2010 ............. 3,113,181 $ 8.19 7.8 $47,636
The weighted average grant date fair value of Performance Options granted was $6.73, $4.17, and
$4.64 during 2009, 2008 and the 2007 Successor period, respectively.
The total intrinsic value of all stock options repurchased by the Company under terms of the
management stockholders’ agreements during 2009, 2008 and the 2007 Successor period was
$0.8 million, $2.5 million and $0.5 million, respectively.
At January 29, 2010, the total unrecognized compensation cost related to non-vested stock options
was $37.4 million with an expected weighted average expense recognition period of 3.3 years.
The Company currently believes that the performance targets related to the unvested Performance
Options will be achieved. If such goals are not met, and there is no change in control or certain public
offerings of the Company’s common stock which would result in the acceleration of vesting of the
Performance Options, future compensation cost relating to unvested Performance Options will not be
recognized.
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