Foot Locker 2010 Annual Report Download - page 81

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The total intrinsic value of options exercised (the difference between the market price of the Company’s
common stock on the exercise date and the price paid by the optionee to exercise the option) was $5 million for
2010, and was not significant for 2009 and 2008. The aggregate intrinsic value for stock options outstanding and
for stock options exercisable (the difference between the Company’s closing stock price on the last trading day of
the period and the exercise price of the options, multiplied by the number of in-the-money stock options) as of
January 29, 2011 was $23 million and $13 million, respectively. The Company received $10 million in cash from
option exercises for the year ended January 29, 2011.
The following table summarizes information about stock options outstanding and exercisable at January 29,
2011:
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)
$9.85 to $11.18 .............. 1,805 6.65 $10.07 1,119 $10.12
$11.66 to $15.10 ............. 2,094 7.37 $14.04 653 $12.44
$15.74 to $23.92 ............. 1,985 3.65 $20.66 1,980 $20.67
$24.04 to $28.15 ............. 1,336 3.34 $26.47 1,336 $26.47
7,220 5.44 $17.17 5,088 $18.81
Changes in the Company’s nonvested options at January 29, 2011 are summarized as follows:
Number of
Shares
Weighted-
Average Grant
Date Fair Value
per share
(in thousands, except prices per share)
Nonvested at January 30, 2010 ........................ 1,918 $11.67
Granted ....................................... 1,311 15.10
Vested ........................................ (946) 11.51
Expired or cancelled ............................... (151) 20.41
Nonvested at January 29, 2011 ........................ 2,132 $13.23
Restricted Stock and Units
Restricted shares of the Company’s common stock and restricted stock units may be awarded to certain
officers and key employees of the Company. The Company also issues restricted stock units to its non-employee
directors. 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 2010, 2009, and 2008, there were 653,535, 227,000, and
87,500 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. Generally, awards fully vest after the passage of time, typically three years. However,
restricted stock unit grants made after May 19, 2010 in connection with the Company’s long-term incentive
program vest after the attainment of certain performance metrics and the passage of time. Restricted stock is
considered outstanding at the time of grant and the holders have voting rights. Dividends are paid to holders of
restricted stock that vest with the passage of time; for performance-based restricted stock granted after May 19,
2010, dividends will be accumulated and paid after the performance criteria are met.
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