Invacare 2008 Annual Report Download - page 91

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Shareholders’ Equity Transactions—Continued
and 2007, there were 204,567 and 175,294 shares, respectively for restricted stock awards that were unvested.
Unearned restricted stock compensation of $4,505,000 in 2008, $3,904,000 in 2007 and $3,512,000 in 2006,
determined as the market value of the shares at the date of grant, is being amortized on a straight-line basis over
the vesting period. Compensation expense of $1,338,000, $1,322,000 and $1,075,000 was recognized in 2008,
2007 and 2006, respectively, related to restricted stock awards granted since 2001.
The 2003 Plan and the 1994 Performance Plan have provisions that allow employees to exchange mature
shares to pay the exercise price and surrender shares for the options to cover the minimum tax withholding
obligation. Under these provisions, the company acquired treasury shares of approximately 224,000 for
$5,334,000 in 2008, 14,000 for $298,000 in 2007 and 128,000 for $4,314,000 in 2006.
The following table summarizes information about stock option activity for the three years ended
December 31, 2008, 2007 and 2006:
2008
Weighted
Average
Exercise
Price 2007
Weighted
Average
Exercise
Price 2006
Weighted
Average
Exercise
Price
Options outstanding at January 1 ............ 4,732,965 $30.02 4,724,651 $30.68 4,776,162 $31.57
Granted ................................ 701,594 24.82 503,096 23.26 522,152 23.87
Exercised .............................. (243,982) 23.60 (1,875) 23.32 (231,448) 24.61
Canceled ............................... (280,030) 33.89 (492,907) 29.45 (342,215) 36.83
Options outstanding at December 31 ......... 4,910,547 $29.37 4,732,965 $30.02 4,724,651 $30.68
Options price range at December 31 ......... $ 10.70 to $ 16.03 to $ 16.03 to
$ 47.80 $ 47.80 $ 47.80
Options exercisable at December 31 ......... 3,654,689 3,895,458 4,216,624
Options available for grant at December 31* . . 746,320 1,354,431 1,784,033
* Options available for grant as of December 31, 2008 reduced by net restricted stock award activity of
291,762.
The following table summarizes information about stock options outstanding at December 31, 2008:
Options Outstanding Options Exercisable
Exercise Prices
Number
Outstanding
At 12/31/08
Weighted Average
Remaining
Contractual Life
Weighted Average
Exercise Price
Number
Exercisable
At 12/31/08
Weighted Average
Exercise Price
$ 10.70 – $16.03 ............. 31,822 2.6 years $12.15 8,680 $16.03
$ 16.31 – $24.43 ............. 1,953,284 4.1 $22.21 1,380,940 $21.96
$ 25.13 – $36.40 ............. 1,698,733 5.5 $29.08 1,038,361 $30.97
$ 37.70 – $47.80 ............. 1,226,708 5.7 $41.61 1,226,708 $41.61
Total ...................... 4,910,547 5.0 $29.37 3,654,689 $31.10
The plans provide that shares granted come from the company’s authorized but unissued Common Shares or
treasury shares. In addition, the company’s stock-based compensation plans allow participants to exchange
shares for withholding taxes, which results in the company acquiring treasury shares. Pursuant to the plans, the
Committee has established that the majority of the 2008 grants may not be exercised within one year from the
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