Foot Locker 2007 Annual Report Download - page 76

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60
Changes in the Company’s nonvested options at February 2, 2008 are summarized as follows:
Number of
Shares
Weighted-
Average Grant -
Date Fair Value
per Share
(in thousands)
Nonvested at February 4, 2007 ..................................... 1,593 $25.33
Granted ...................................................... 778 22.38
Vested ....................................................... (549) 26.51
Expired or Cancelled ............................................. (375) 23.99
Nonvested at February 2, 2008 ..................................... 1,447 23.65
As of February 2, 2008, there was $2.6 million of total unrecognized compensation cost related to nonvested stock
options, which is expected to be recognized over a weighted-average period of 1 year.
Restricted Shares and Units
Restricted shares of the Company’s common stock may be awarded to officers and key employees of the Company.
For executives outside of the United States, the Company issues restricted stock units. Each restricted stock unit
represents the right to receive one share of the Company’s common stock, provided that the vesting conditions are
satisfied. In 2007, 2006 and 2005, there were 90,000, 20,000 and 50,870 restricted stock units outstanding, respectively.
Compensation expense is recognized using the fair market value at the date of grant and is amortized over the vesting
period, provided the recipient continues to be employed by the Company. These awards fully vest after the passage of
time, generally three years. Restricted stock is considered outstanding at the time of grant, as the holders of restricted
stock are entitled to receive dividends and have voting rights.
Restricted shares and units activity for the years-ended February 2, 2008, February 3, 2007, and January 28, 2006
is summarized as follows:
Number of Shares and Units
2007 2006 2005
(in thousands)
Outstanding at beginning of the year . . . . . . . . . . . . . . . . . . . . . . . 537 1,041 1,177
Granted ............................................. 583 157 245
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (285) (600) (205)
Cancelled or forfeited ................................... (25) (61) (176)
Outstanding at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 810 537 1,041
Aggregate value (in millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19.0 $ 13.6 $ 18.0
Weighted average remaining contractual life . . . . . . . . . . . . . . . . . 1.77 years 0.93 years 0.69 years
The weighted average grant-date fair value per share was $22.95, $24.08 and $26.55 for 2007, 2006 and 2005,
respectively. The total value of awards for which restrictions lapsed during the year-ended February 2, 2008,
February 3, 2007 and January 28, 2006 was $7.3 million, $6.7 million and $4.0 million, respectively. As of February 2, 2008,
there was $9.8 million of total unrecognized compensation cost, related to nonvested restricted stock awards.
The Company recorded compensation expense related to restricted shares, net of forfeitures, of $5.6 million in 2007,
$4.0 million in 2006 and $6.1 million in 2005.
24. Legal Proceedings
Legal proceedings pending against the Company or its consolidated subsidiaries consist of ordinary, routine
litigation, including administrative proceedings, incidental to the business of the Company, as well as litigation
incidental to the sale and disposition of businesses that have occurred in past years. These legal proceedings include
commercial, intellectual property, customer, and labor-and-employment-related claims. Certain of the Company’s
subsidiaries are defendants in a number of lawsuits filed in state and federal courts containing various class action
allegations under state wage and hour laws, including allegations concerning classification of employees as exempt or