E-Z-GO 1999 Annual Report Download - page 56

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average expected lives of 3.5 years. Under these assumptions, the weighted-average fair
value of an option to purchase one share granted in 1999, 1998, and 1997 was approxi-
mately $15, $12, and $10, respectively.
At year-end 1999, 5,933,000 stock options were available for future grant under the 1999
Plan. Stock option transactions during the last three years are summarized as follows:
1999 1998 1997
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
(Shares in thousands) Shares Price Shares Price Shares Price
Options outstanding
at beginning of year 8,342 $47.23 9,001 $36.74 9,290 $31.08
Options granted 2,176 $73.75 1,909 $74.08 1,333 $62.54
Options exercised (1,451) $34.86 (2,465) $29.52 (1,541) $24.56
Options canceled (245) $67.06 (103) $51.48 (81) $43.40
Options outstanding
at end of year 8,822 $55.26 8,342 $47.23 9,001 $36.74
Options exercisable
at end of year 5,815 $45.60 5,818 $36.80 6,641 $30.21
Stock options outstanding at the end of 1999 are summarized as follows:
Weighted
Average Weighted Weighted
Remaining Average Average
Contractual Exercise Exercise
(Shares in thousands) Outstanding Life Price Exercisable Price
January 1, 2000:
$13 – $37 2,564 4.6 $28.38 2,564 $28.38
$38 – $63 2,399 7.4 $53.57 2,377 $53.50
$64 – $94 3,859 9.4 $74.09 874 $74.28
Reserved shares of common stock
At year-end 1999, 3,023,000 shares of common stock were reserved for the subsequent
conversion of preferred stock and 8,822,000 shares were reserved for the exercise of stock
options.
Preferred stock purchase rights
Each outstanding share of Textron common stock has attached to it one-half of a preferred
stock purchase right. One preferred stock purchase right entitles the holder to buy one one-
hundredth of a share of Series C Junior Participating Preferred Stock at an exercise price of
$250. The rights become exercisable only under certain circumstances related to a person or
group acquiring or offering to acquire a substantial block of Textron’s common stock. In
certain circumstances, holders may acquire Textron stock, or in some cases the stock of an
acquiring entity, with a value equal to twice the exercise price. The rights expire in September
2005 but may be redeemed earlier for $.05 per right.
Income per common share
A reconciliation of income from continuing operations and basic to diluted share
amounts is presented below.
For the years ended January 1, 2000 January 2, 1999 January 3, 1998
(Dollars in millions,Average Average Average
shares in thousands) Income Shares Income Shares Income Shares
Income from continuing operations $623 $443 $372
Less: Preferred stock dividends (1) (1) (1)
Basic
Available to common shareholders 622 150,389 442 161,254 371 164,830
Dilutive effect of convertible
preferred stock and stock options 1 3,365 1 4,120 1 4,673
Diluted
Available to common shareholders
and assumed conversions $623 153,754 $443 165,374 $372 169,503
54 Consistent Growth