Family Dollar 2006 Annual Report Download - page 38

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option−pricing model to estimate the grant−date fair value of its stock option awards. The grant−date fair value of the Company’s
performance share rights awards is based on the stock price on the grant date. Compensation expense for the Company’s stock−based
awards is recognized ratably, net of estimated forfeitures, over the service period of each award. See Note 9 for more information on
the Company’s stock−based compensation plans.
31
Source: FAMILY DOLLAR STORES, 10−K, March 28, 2007