HR Block 2005 Annual Report Download - page 129

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Changes during the years ended April 30, 2005, 2004 and 2003 under the stock-based compensation plans were as follows:
(shares in 000s)
2005 2004 2003
Weighted- Weighted- Weighted-
Average Average Average
Shares Exercise Price Shares Exercise Price Shares Exercise Price
Options outstanding, beginning of year 28,964 $ 17.93 31,544 $ 16.07 31,820 $ 13.17
Options granted 7,604 23.86 7,488 22.03 10,728 22.16
Options exercised (6,959) 18.62 (7,854) 14.56 (10.196) 12.33
Options expired/cancelled (2,506) 22.21 (2,214) 17.26 (808) 17.27
Options outstanding, end of year 27,103 19.02 28,964 17.93 31,544 16.07
Shares exercisable, end of year 13,268 15.89 13,336 15.39 13,672 12.61
Restricted shares granted 980 23.89 1,028 21.97 90 22.32
Restricted shares vested 352 21.66 144 11.90 126 10.51
Restricted shares outstanding, end of year 1,554 23.20 1,020 21.96 200 14.58
Shares reserved for future option or restricted stock grants, end
of year 9,889 9,880 14,563
A summary of stock options outstanding and exercisable at April 30, 2005 follows:
(shares in 000s)
Outstanding Exercisable
Number Weighted-Average Weighted- Number Weighted-
Outstanding Remaining Average Exercisable Average
at April 30 Contractual Life Exercise Price at April 30 Exercise Price
$ 8.06 – 10.95 3,480 4 years $ 9.08 3,426 $ 9.08
$ 11.06 – 13.91 2,462 4 years 12.99 2,457 12.99
$ 16.05 – 19.98 5,849 7 years 16.67 3,006 16.73
$ 20.00 – 23.16 7,966 8 years 22.23 4,161 22.02
$ 23.50 – 29.48 7,346 9 years 24.15 218 27.04
27,103 13,268
The ESPP provides the option to purchase shares of our respectively, were purchased under the ESPP out of a total
Common Stock through payroll deductions to a majority of the authorized 6.0 million shares.
employees of our subsidiaries. The purchase price of the stock is During fiscal years 2005 and 2004, we recorded compensation
90% of the lower of either the fair market value of our Common expense under the fair value method using the Black-Scholes
Stock on the first trading day within the Option Period or on the option-pricing model on the date of the grant. The pro forma
last trading day within the Option Period. The Option Periods are effect on fiscal year 2003 is disclosed in note 1. The following
six-month periods beginning January 1 and July 1 each year. weighted-average assumptions and fair values were used for
During fiscal years 2005 and 2004, 300,976 and 254,492 shares,
H&R BLOCK 2005 Form 10K
67