Foot Locker 2007 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2007 Foot Locker 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 96

  • 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

59
The following table shows the Company’s assumptions used to compute the stock-based compensation expense
and pro forma information:
Stock Option Plans Stock Purchase Plan
2007 2006 2005 2007 2006 2005
Weighted-average risk free rate
of interest ................... 4.43% 4.68% 3.99% 5.00% 4.39% 4.19%
Expected volatility ............... 28% 30% 28% 22% 22% 25%
Weighted-average expected
award life . . . . . . . . . . . . . . . . . . . 4.2 years 4.0 years 3.8 years 1.0 year 1.0 years .7 years
Dividend yield . . . . . . . . . . . . . . . . . . 2.3% 1.5% 1.1% 2.0% 1.4% —
Weighted-average fair value . . . . . . . . $5.28 $6.36 $6.69 $4.96 $4.71 $5.54
The information set forth in the following table covers options granted under the Company’s stock option plans:
2007 2006 2005
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 ............................. 6,048 $ 19.15 5,962 $18.45 5,909 $16.69
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 778 $22.38 858 $23.98 1,014 $ 27.42
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (474) $15.29 (459) $ 15.12 (682) $ 15.03
Expired or cancelled . . . . . . . . . . . . . . . . . . . . . (375) $23.99 (313) $24.83 (279) $ 22.11
Options outstanding at end of year .......... 5,977 $19.57 6,048 $ 19.15 5,962 $18.45
Options exercisable at end of year ........... 4,530 $18.27 4,455 $16.94 4,042 $16.00
Options available for future grant at end
of year ............................. 5,804 4,931 5,768
The total intrinsic value of options exercised for 2007 and 2006 was $2.7 million and $4.0 million, respectively.
The aggregate intrinsic value for stock options outstanding and for stock options exercisable as of February 2, 2008 was
$4.8 million. The intrinsic value for stock options outstanding and exercisable is calculated as the difference between
the fair market value as the end of the period and the exercise price of the shares. The Company received $6.9 million
and $6.8 million in cash from option exercises for 2007 and 2006, respectively. The tax benefit realized by the Company
on the stock option exercises for 2007 was approximately $1 million.
The following table summarizes information about stock options outstanding and exercisable at February 2, 2008:
Options Outstanding Options Exercisable
Range of Exercise Prices Number
Outstanding
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price Number
Exercisable
Weighted-
Average
Exercise
Price
(in thousands, except prices per share)
$4.53 to $11.91 ...................... 1,397 3.71 $10.72 1,397 $10.72
$12.31 to $16.19 ..................... 1,258 4.27 $ 15.07 1,193 $15.12
$16.20 to $23.92 ..................... 1,453 8.48 $ 23.34 325 $23.13
$24.04 to $27.01 ..................... 1,309 5.16 $25.53 1,224 $25.54
$27.10 to $28.50 ..................... 560 6.97 $28.09 391 $28.06
$4.53 to $28.50 . . . . . . . . . . . . . . . . . . . . . 5,977 5.61 $19.57 4,530 $18.27