Foot Locker 2005 Annual Report Download - page 68

The information set forth in the following table covers options granted under the Company’s stock option plans:
2005 2004 2003
Number
of
Shares
Weighted-
Average
Exercise
Price
Number
of
Shares
Weighted-
Average
Exercise
Price
Number
of
Shares
Weighted-
Average
Exercise
Price
(in thousands, except prices per share)
Options outstanding at beginning of year ... 5,909 $16.69 6,886 $14.73 7,676 $15.18
Granted ..................................... 1,014 $27.42 1,183 $25.20 1,439 $10.81
Exercised .................................... 682 $15.03 1,853 $14.43 1,830 $12.50
Expired or canceled ......................... 279 $22.11 307 $19.13 399 $19.55
Options outstanding at end of year ......... 5,962 $18.45 5,909 $16.69 6,886 $14.73
Options exercisable at end of year .......... 4,042 $16.00 3,441 $15.34 4,075 $15.99
Options available for future grant at
end of year ............................... 5,768 7,464 8,780
The following table summarizes information about stock options outstanding and exercisable at January 28, 2006:
Options Outstanding Options Exercisable
Range of Exercise Prices Shares
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price
(in thousands, except prices per share)
$ 4.53 to $10.89 ......................... 1,012 6.6 $ 9.79 702 $ 9.59
$11.31 to $12.99 ........................ 1,158 5.0 12.24 1,154 12.24
$13.34 to $16.02 ........................ 1,047 6.0 15.83 1,043 15.84
$16.19 to $25.37 ........................ 1,016 4.1 22.93 799 23.15
$25.39 to $27.01 ........................ 1,032 8.3 25.65 327 25.39
$27.10 to $28.50 ........................ 697 9.1 28.04 17 28.15
$ 4.53 to $28.50 ......................... 5,962 6.4 $18.45 4,042 $16.00
22 Restricted Stock
Restricted shares of the Company’s common stock may be awarded to certain officers and key employees of the
Company. There were 225,000, 330,000, and 845,000 restricted shares of common stock granted in 2005, 2004 and 2003,
respectively. In 2005 and 2004, 20,000 and 72,005 restricted stock units, respectively, were granted to certain executives
located outside of the United States; each restricted unit represents the right to receive one share of the Company’s
common stock provided that the vesting conditions are satisfied. The market values of the shares and units at the date
of grant amounted to $6.5 million in 2005, $10.2 million in 2004 and $9.8 million in 2003. The market values are recorded
within shareholders’ equity and are amortized as compensation expense over the related vesting periods. These awards
fully vest after the passage of a restriction period, generally three years, except for certain grants in 2005, 2004 and 2003.
The Company granted 105,000 shares of restricted stock in 2005, which vest in three equal installments on approximately
each of the next three years grant date anniversary, 75,000 shares of restricted stock in 2004, which vest over 13 months
and in 2003 granted 200,000 shares of restricted stock that vested 50 percent one year following the date of grant and
50 percent that will vest two years from the date of grant. During 2005, 2004 and 2003, respectively, 176,135, 30,000
and 80,000 restricted shares and units were forfeited. The deferred compensation balance, reflected as a reduction to
shareholders’ equity, was $6.2 million, $9.0 million and $7.1 million as of January 28, 2006, January 29, 2005 and
January 31, 2004, respectively. The Company recorded compensation expense related to restricted shares, net of
forfeitures, of $6.1 million in 2005, $8.0 million in 2004 and $4.1 million in 2003.
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