Dollar Tree 2009 Annual Report Download - page 48

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Notes to Consolidated Financial Statements
Restricted Stock
The฀Company฀granted฀0.4฀million,฀0.4฀million฀and฀
0.3฀million฀service฀based฀RSUs,฀net฀of฀forfeitures฀in฀
2009,฀2008฀and฀2007,฀respectively,฀from฀the฀EIP฀and฀the฀
EOEP฀to฀the฀Company’s฀employees฀and฀ofcers.฀The฀
fair value of all of these RSUs is being expensed ratably
over the three-year vesting periods, or a shorter period
based on the retirement eligibility of the grantee. The
fair฀value฀was฀determined฀using฀the฀Company’s฀closing฀
stock price on the date of grant. The Company recog-
nized฀$12.8฀million,฀$9.5฀million฀and฀$7.7฀million฀of฀
expense฀related฀to฀these฀RSUs฀during฀2009,฀2008฀and฀
2007.฀As฀of฀January฀30,฀2010,฀there฀was฀approximately฀
$15.9฀million฀of฀total฀unrecognized฀compensation฀
expense related to these RSUs which is expected to
be฀recognized฀over฀a฀weighted฀average฀period฀of฀20฀
months.
In฀2009,฀the฀Company฀granted฀0.2฀million฀RSUs฀
from฀the฀EIP฀and฀the฀EOEP฀to฀certain฀ofcers฀of฀the฀
Company, contingent on the Company meeting certain
performance฀targets฀in฀2009฀and฀future฀service฀of฀these฀
ofcers฀through฀scal฀2010.฀The฀Company฀met฀these฀
performance฀targets฀in฀scal฀2009;฀therefore,฀the฀fair฀
value฀of฀these฀RSUs฀of฀$6.4฀million฀is฀being฀expensed฀
over฀the฀service฀period.฀The฀Company฀recognized฀
$2.7฀million฀of฀expense฀on฀these฀RSUs฀in฀2009.฀The฀
fair value of these RSUs was determined using the
Company’s฀closing฀stock฀price฀on฀the฀grant฀date.
In฀2008,฀the฀Company฀granted฀0.1฀million฀RSUs฀
from฀the฀EIP฀and฀the฀EOEP฀to฀certain฀ofcers฀of฀the฀
The฀following฀tables฀summarize฀the฀Company’s฀various฀option฀plans฀and฀information฀about฀options฀outstanding฀at฀
January฀30,฀2010฀and฀changes฀during฀the฀year฀then฀ended.฀
Stock Option Activity
January 30, 2010
Shares
Weighted
Average
Per Share
Exercise Price
Weighted
Average
Remaining
Term
Aggregate
Intrinsic Value
(in millions)
Outstanding, beginning of period ฀ 1,942,616฀ ฀ $฀ 29.41฀
Granted 15,939 ฀฀ ฀ 43.97฀
Exercised ฀ (700,803) ฀฀ ฀ 30.68฀
Forfeited ฀ (30,913) ฀฀ ฀ 25.50฀
Outstanding, end of period ฀ 1,226,839฀ ฀฀ $฀ 29.00฀ ฀฀ ฀ 5.6฀ ฀฀ $฀ 25.1฀
Options vested and expected to vest
at฀January฀30,฀2010 ฀ 1,199,882฀ ฀฀ $฀ 29.05฀ ฀฀ ฀ 5.6฀ ฀฀ $฀ 24.6฀
Options exercisable at end of period ฀ 741,484฀ ฀฀ $฀ 28.06฀ ฀฀ ฀ 4.1฀ $ 15.9
Options Outstanding Options Exercisable
Range of Exercise Prices
Options
Outstanding
at฀January฀30,
2010
Weighted฀
Average
Remaining
Contractual Life
Weighted฀
Average
Exercise
Price
Options
Exercisable
at฀January฀30,
2010
Weighted฀
Average
Exercise
Price
$0.86฀ ฀ 1,116฀ N/A ฀฀ $฀ 0.86฀ ฀ 1,116฀ ฀ $฀ 0.86฀
$10.99฀to฀$21.28฀ ฀ 150,568฀ ฀ 2.8 ฀฀ ฀ 19.57฀ ฀ 150,568฀ ฀฀ ฀ 19.57฀
$21.29฀to฀$29.79฀ ฀ 615,637฀ ฀ 6.4 ฀฀ ฀ 26.12฀ ฀ 293,125฀ ฀฀ ฀ 25.85฀
$29.80฀to฀$43.56 ฀ 445,677฀ ฀ 5.2 ฀฀ ฀ 35.67฀ ฀ 290,991฀ ฀฀ ฀ 34.43฀
$43.57฀to฀$48.36 ฀ 13,841฀ 9.3 ฀฀ ฀ 44.68฀ ฀ 5,684฀ ฀฀ ฀ 46.65฀
$0.86฀to฀$48.36฀ ฀ 1,226,839฀ ฀ 6.4 ฀฀ $฀ 29.00฀ ฀ 741,484฀ ฀฀ $฀ 28.06฀
The฀intrinsic฀value฀of฀options฀exercised฀during฀2009,฀2008฀and฀2007฀was฀approximately฀$11.0฀million,฀$7.2฀
million฀and฀$32.8฀million,฀respectively.
46฀฀฀DOLLAR฀TREE,฀INC.฀•฀2009฀Annual฀Report