Garmin 2010 Annual Report Download - page 97

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85
Exercise Options Remaining Options
Price Outstanding Life (Years) Exercisable
(In Thousands) (In Thousands)
$8.00 -$20.00 1,180 2.93 1,177
$20.01 - $40.00 1,871 4.26 1,825
$40.01 - $60.00 3,440 6.34 2,199
$60.01 - $80.00 1,266 6.39 761
$80.01 - $100.00 3 5.05 2
$100.01 - $120.00 1,323 6.87 795
$120.01 - $140.00 3 5.49 2
9,086 5.55 6,761
Stock Options and SARs as of December 25, 2010
Weighted-Average
Grant Price Number of Shares
(In Thousands)
Outstanding at December 29, 2007 - -
Granted $19.59 1,044
Released/Vested - -
Cancelled $19.59 (1)
Outstanding at December 27, 2008 $19.59 1,043
Granted $29.79 501
Released/Vested $19.59 (204)
Cancelled $19.63 (24)
Outstanding at December 26, 2009 $23.47 1,316
Granted $30.29 515
Released/Vested $23.02 (291)
Cancelled $23.32 (37)
Outstanding at December 25, 2010 $25.90 1,503
Restricted Stock Units
The weighted-average remaining contract life for stock options and SARs outstanding and exercisable at
December 25, 2010 is 5.55 and 5.14 years, respectively. The weighted-average remaining contract life of restricted
stock units at December 25, 2010 was 2.39 years.
The fair value for these options was estimated at the date of grant using a Black-Scholes option pricing
model with the following weighted-average assumptions for 2010, 2009, and 2008:
2010 2009 2008
Weighted average fair value of options granted $8.99 $7.32 $18.47
Expected volatility 0.4178 0.4286 0.3845
Dividend yield 4.94% 2.42% 3.75%
Expected life of options in years 6.3 6.2 6.0
Risk-free interest rate 2.5% 3.0% 1.6%
The Black-Scholes option valuation model was developed for use in estimating the fair value of traded
options which have no vesting restrictions and are fully transferable. In addition, option valuation models require
the iput of highlsujetie assuptios, iludig the epeted stok pie olatilit. Beause the Copas
employee stock options have characteristics significantly different from those of traded options, and because
hages i the sujetie iput assuptios a ateiall affet the fai alue estiate, i aageets
opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee