O'Reilly Auto Parts 2003 Annual Report Download - page 49

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notes to consolidated financial statements (continued)
page 47
Profit sharing contributions accrued at December 31, and funded in the next year through the issuance of shares of the Company’s
common stock were as follows:
year market
funded shares value
2003 85,184 $2,300,000
2002 77,876 2,200,000
2001 88,118 1,729,000
The Company also sponsors a non-funded non-contributory defined benefit health care plan, which provides certain health benefits
to qualified retired employees. According to the terms of this plan, retirees’ annual benefits are limited to $1,000 per employee starting
at age 66 for employees with 20 or more years of service. Post-retirement benefit costs for each of the years ended December 31,
2003, 2002, and 2001 amounted to $12,000.
Additionally, the Company has adopted a stock purchase plan under which 1,300,000 shares of common stock were reserved for
issuance. Under the plan, substantially all employees and non-employee directors have the right to purchase shares of the Company’s
common stock monthly at a price equal to 85% of the fair market value of the stock, not to exceed 5% of the participants annual
salary. Purchases of common stock under the plan during the years ended December 31 were as follows:
weighted
average market
year shares price value
2003 103,457 $27.52 $2,723,000
2002 102,662 25.18 2,585,000
2001 97,991 22.13 2,168,000
The Company has in effect a performance incentive plan for the Company’s senior management under which 400,000 shares of
stock were reserved for issuance. Shares awarded under the plan vest equally over a three-year period and are held in escrow until
such vesting has occurred. Shares are forfeited when an employee ceases employment. Shares, net of forfeitures, issued under the
plan during the years ended December 31 were as follows:
year market
funded shares value
2003 10,530 $ 248,000
2002 4,779 175,000
2001 (536) (9,000)