Mercury Insurance 2008 Annual Report Download - page 87

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77
A summary of the stock option activity of the Company’s plans in 2008 is presented below:
Shares
Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual Term
(years)
Aggregate Intrinsic
Value (in 000's)
Outstanding at January 1, 2008 477,245 46.70$
Granted 88,000 48.20
Exercised (33,800) 38.05
Cancelled or expired - -
Outstanding at December 31, 2008 531,445 47.49$ 6.1 1,384$
Exercisable at December 31, 2008 276,345 43.64$ 4.1 1,384$
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the
Company’s closing stock price and the exercise price, multiplied by the number of in-the-money options) that would have been
received by the option holders had all options been exercised on December 31, 2008. The aggregate intrinsic value of stock
options exercised was $442,000, $1,134,000 and $1,661,000 during 2008, 2007 and 2006, respectively. The total fair value of
options vested was $652,000, $487,000 and $886,000 during 2008, 2007 and 2006, respectively.
The following table summarizes information regarding stock options outstanding at December 31, 2008:
Range of Exercise Prices Number Outstanding
Weighted Avg.
Remaining
Contractual Life
Wei
g
hted Av
g
.
Exercise Price Number Exercisable
Weighted Avg.
Exercise Price
$ 22.06 to 29.77 18,245 1.1 24.00$ 18,245 24.00$
$ 33.88 to 58.83 513,200 6.2 48.33$ 258,100 45.03$
Options Outstanding Options Exercisable
As of December 31, 2008, $1,457,000 of total unrecognized compensation cost related to non-vested stock options is
expected to be recognized over a weighted-average period of 1.9 years.
(13) Earnings Per Share
A reconciliation of the numerator and denominator used in the basic and diluted earnings per share calculation is
presented below:
Loss
(Numerator)
Weighted Shares
(Denominator)
Per-Share
Amount
Income
(Numerator)
Weighted Shares
(Denominator)
Per-Share
Amount
Income
(Numerator)
Weighted Shares
(Denominator)
Per-Share
Amount
Basic EPS
Income (Loss) available to
common stockholders (242,119)$ 54,744 (4.42)$ 237,832$ 54,704 4.35$ 214,817$ 54,651 3.93$
Effect of dilutive securities:
Options - 173 - 125 - 135
Diluted EPS
Income (Loss) available to
common stockholders after
assumed conversions (242,119)$ 54,917 (4.42)$ 237,832$ 54,829 4.34$ 214,817$ 54,786 3.92$
2008 2007 2006
(Amounts in thousands, except per share data)
The antidilutive impact of incremental shares is excluded from loss positions in 2008 in accordance with GAAP.
The diluted weighted shares exclude incremental shares of 305,000, 88,000 and 107,000 for 2008, 2007 and 2006,
respectively. These shares are excluded due to their antidilutive effect.