O'Reilly Auto Parts 2011 Annual Report Download - page 75

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65
The table below identifies the shares that have been authorized for issuance and the shares available for future issuance under the
Company plans, as of December 31, 2011 (in thousands):
Plans
Total Shares
Authorized for
Issuance under the
Plans
Shares Available
for Future Issuance
under the Plans
Employee Incentive Plans 34,000 7,703
Director Stock Plan 1,000 277
Performance Incentive Plan 650 390
Employee Stock Purchase Plan 4,250 1,116
Profit Sharing and Savings Plan 4,200 349
Stock options:
The Company’s employee incentive plans provide for the granting of stock options for the purchase of the common stock of the
Company to certain key employees of the Company. Employee stock options are granted at an exercise price that is equal to the
closing market price of the Company’s common stock on the date of the grant. Employee stock options granted under the plans expire
after ten years and typically vest 25% per year, over four years. The Company records compensation expense for the grant date fair
value of the option awards, adjusted for estimated forfeitures, evenly over the vesting period.
The table below identifies the employee stock option activity under these plans during the year ended December 31, 2011:
Shares
(in thousands)
Average
Remaining
Contractual
Terms
(in years)
Outstanding at December 31, 2010 8,255 $ 30.37
Granted 1,672 63.15
Exercised (1,818) 26.97
Forfeited (716) 42.96
Outstanding at December 31, 2011 7,393 $ 37.41 6.68 $ 314,531
Vested or expected to vest at December 31, 2011 6,876 $ 36.35 6.54 $ 299,798
Exercisable at December 31, 2011 3,878 $ 27.51 5.15 $ 203,379
Weighted-
Average Exercise
Price
Aggregate
Intrinsic Value
(in thousands)
The Company’s director stock plan provides for the granting of stock options for the purchase of the common stock of the Company to
directors of the Company. Director stock options are granted at an exercise price that is equal to the closing market price of the
Company’s common stock on the date of the grant. Director stock options granted under the plans expire after seven years and vest
fully after six months. The Company records compensation expense for the grant date fair value of the option awards evenly over the
vesting period.
The table below identifies the director stock option activity under this plan during the year ended December 31, 2011:
Shares
(in thousands)
Average
Remaining
Contractual
Terms
(in years)
Outstanding at December 31, 2010 140 $ 33.43
Granted - -
Exercised (43) 29.85
Forfeited - -
Outstanding at December 31, 2011 97 $ 35.00 3.77 $ 4,383
Vested or expected to vest at December 31, 2011 97 $ 35.00 3.77 $ 4,383
Exercisable at December 31, 2011 97 $ 35.00 3.77 $ 4,383
Weighted-
Average Exercise
Price
Aggregate
Intrinsic Value
(in thousands)
FORM 10-K