Invacare 2006 Annual Report Download - page 83

Shareholders’ Equity Transactions — Continued
effective date of the acceleration. As of December 31, 2006, an aggregate of 38,484,620 Common Shares were
reserved for issuance upon the conversion of Class B Common Shares and future rights (as defined below) and the
exercise or grant of stock options or other awards under the company’s equity incentive plans. On an as adjusted
basis, including the Common Shares issuable upon conversion of the convertible debentures that were issued as part
of the company’s Refinancing completed in February 2007, an aggregate of 43,930,364 would have been reserved
for issuance as of December 31, 2006.
2006
Weighted
Average Exercise
Price 2005
Weighted
Average Exercise
Price 2004
Weighted
Average Exercise
Price
Options outstanding at January 1 . . 4,776,162 $31.57 4,638,405 $29.81 4,518,890 $27.34
Granted . . . ................. 522,152 23.87 614,962 41.59 626,450 43.89
Exercised . . ................. (231,448) 24.61 (356,676) 23.39 (449,374) 24.13
Canceled . . ................. (342,215) 36.83 (120,529) 37.17 (57,561) 34.75
Options outstanding at
December 31 . . ............ 4,724,651 $30.68 4,776,162 $31.57 4,638,405 $29.81
Options price range at
December 31 . . ............ $ 16.03 to $ 16.03 to $ 16.03 to
$ 47.80 $ 47.80 $ 47.35
Options exercisable at
December 31 . . ............ 4,216,624 4,745,435 2,963,385
Options available for grant at
December 31*. . ............ 1,784,033 454,142 1,033,858
* Options available for grant as of December 31, 2006 reduced by net restricted stock award activity of 241,649.
The following table summarizes information about stock options outstanding at December 31, 2006:
Exercise Prices
Number
Outstanding
At 12/31/06
Weighted Average
Remaining
Contractual Life
Weighted Average
Exercise Price
Number
Exercisable
At 12/31/06
Weighted Average
Exercise Price
Options Outstanding Options Exercisable
$16.03 – $23.69 1,770,178 4.3 years $22.21 1,340,001 $22.10
$25.13 – $36.40 1,486,921 4.3 $30.02 1,409,071 $29.94
$37.70 – $47.80 1,467,552 7.7 $41.57 1,467,552 $41.57
Total ........ 4,724,651 5.3 $30.68 4,216,624 $31.50
The company had utilized the disclosure-only provisions of SFAS No. 123 through December 31, 2005.
Accordingly, no compensation cost was recognized for the stock option plans, except the expense recorded related
to the 132,017 restricted stock awards granted in years 2001 through 2005.
The plans provide that shares granted come from the company’s authorized but unissued Common Shares or
treasury shares. Pursuant to the plans, the Committee has established that the majority of the 2006 grants may not be
exercised within one year from the date granted and options must be exercised within ten years from the date
granted. Accordingly, the assumption regarding the stock options issued in 2006, 2005 and 2004 was that 25% of
such options vested in the year following issuance. The stock options awarded during such years provided a four-
year vesting period whereby options vest equally in each year. Current year expense and prior years’ pro forma
disclosures may be adjusted for forfeitures of awards that will not vest because service or employment requirements
FS-24
INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)