E-Z-GO 2008 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2008 E-Z-GO annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

Notes to the Consolidated Financial Statements
72
Note 11. Shareholders’ Equity
Capital Stock
We have authorization for 15 million shares of preferred stock with no par value and 500 million shares of $0.125 par value common stock. Each
share of $2.08 Cumulative Convertible Preferred Stock, Series A ($23.63 approximate stated value) is convertible into 8.8 shares of common
stock, and we can redeem it for $50 per share. At the end of 2008, 2007 and 2006, we had approximately 67,000, 72,000 and 147,000 shares,
respectively, of $2.08 Cumulative Convertible Preferred Stock, Series A issued with approximately 67,000, 72,000 and 78,000 shares
outstanding, respectively. Each share of $1.40 Convertible Preferred Dividend Stock, Series B ($11.82 approximate stated value, preferred only as
to dividends) is convertible into 7.2 shares of common stock, and we can redeem it for $45 per share. At the end of 2008, 2007 and 2006, we had
approximately 34,000, 36,000 and 527,000 shares, respectively, of $1.40 Convertible Preferred Dividend Stock, Series B issued with
approximately 34,000; 36,000 and 41,000 shares outstanding, respectively.
On July 18, 2007, our Board of Directors approved a two-for-one split of our common stock effected in the form of a 100% stock dividend and the
retirement of 85 million shares of treasury stock. The additional shares resulting from the stock split were distributed on August 24, 2007 to
shareholders of record on August 3, 2007. Prior period share data and per share data have been restated to reflect this stock split.
Outstanding common stock activity for the three years ended January 3, 2009 is presented below:
(In thousands) 2008 2007 2006
Beginning balance 250,061 251,192 260,369
Purchases (11,649) (5,902) (17,148)
Exercise of stock options 1,147 3,404 6,634
Conversion of preferred stock to common stock 60 89 102
Other issuances 2,422 1,278 1,235
Ending balance 242,041 250,061 251,192
Reserved Shares of Common Stock
At the end of 2008, common stock reserved for the subsequent conversion of preferred stock and shares reserved for the exercise of outstanding
stock options and the issuance of shares upon vesting of outstanding restricted stock units totaled 12.3 million shares.
Income per Common Share
A reconciliation of income from continuing operations and basic to diluted share amounts is presented below:
2008 2007 2006
Average Average Average
(Dollars in millions, shares in thousands) Income Shares Income Shares Income Shares
Income from continuing operations available to
common shareholders $ 344 245,686 $ 879 249,792 $ 693 255,098
Dilutive effect of convertible preferred stock and
stock options — 4,144 — 5,034 — 5,346
Available to common shareholders and
assumed conversions $ 344 249,830 $ 879 254,826 $ 693 260,444