Lululemon 2011 Annual Report Download - page 71

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Table of Contents
As of January 29, 2012, the unrecognized compensation cost related to these options was $10,387, which is expected to be recognized over
a weighted-average period of 2.4 years; and the total aggregate intrinsic value for stock options outstanding and exercisable was $36,572. The
intrinsic value of stock options exercised during the years ended January 29, 2012, January 30, 2011, and January 31, 2010 was $42,783,
$28,463, and $8,093. The weighted-average grant date fair value of options granted during the years ended January 31, 2011, January 30, 2011,
and January 31, 2010 was $22.51, $25.66, and $8.07, respectively.
The fair value of options with service conditions was determined at the date of grant using the Black-Scholes model. Expected volatilities
are based on a review of a peer group of publicly traded apparel retailers. The expected term of options with service conditions is the simple
average of the term and the requisite service period as stated in the respective option contracts. The risk-free interest rate is the Federal Reserve
federal funds rate. The following assumptions were used in calculating the fair value of stock options issued in fiscal 2011:
11 EARNINGS PER SHARE
The details of the computation of basic and diluted earnings per share are as follows:
68
lululemon
athletica inc.
Dividend yield
0
%
Expected volatility
64.65
%
Risk
-
free interest rate
0.72
%
Weighted
-
average life
4.06 years
Fiscal Year Ended
January 29,
2012
January 30,
2011
January 31,
2010
Net income
$
184,964
$
122,197
$
58,281
Net income attributable to non
-
controlling interest
901
350
—
Net income attributable to lululemon athletica inc
$
184,063
$
121,847
$
58,281
Basic weighted
-
average number of shares outstanding
143,196
141,720
140,502
Effect of stock options assumed exercised
2,082
2,138
1,396
Diluted weighted
-
average number of shares outstanding
145,278
143,858
141,898
Net basic earnings per share
$
1.29
$
0.86
$
0.41
Net diluted earnings per share
$
1.27
$
0.85
$
0.41