Lululemon 2010 Annual Report Download - page 75

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Table of Contents
lululemon athletica inc. and Subsidiaries
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The vesting schedule of the stockholder sponsored awards in lululemon share equivalents is as follows:
The fair value of the non-forfeitable and forfeitable shares issued under LIPO Class A was measured at the fair
value of the underlying stock on the grant date. The fair value of the LIPO Class B options was determined using the
Black-Scholes option pricing model with the following assumptions:
The expected volatility was based on available information on volatility from a peer group of publicly traded
U.S. and Canadian retail apparel companies. The expected life of the options was determined by reviewing data
about exercise patterns of employees in the retail industry as well as considering the probability of a liquidity event
such as the sale of the Company or an IPO and the potential impact of such an event on the exercise pattern. The risk-
free interest rate approximates the yield on benchmark Government of Canada bonds for terms similar to the contract
life of the options.
The total fair value of awards under the stockholder sponsored plans that vested during the years ended
January 30, 2011, January 31, 2010 and February 1, 2009 was $261, $464,and $1,137, respectively.
70
Exchangeable
LIPO USA
LIPO USA
Shares
Shares
Options
December 5, 2005
788
87
105
December 5, 2006
631
60
96
December 5, 2007
276
60
393
December 5, 2008
199
43
384
December 5, 2009
66
14
315
December 5, 2010
—
—
182
Total
1,960
264
1,475
Dividend yield
0%
Expected volatility
45%
Risk
-
free interest rate
5%
Weighted
-
average expected life of option (years)
5.0 years