Office Depot 2001 Annual Report Download - page 50

48
Office Depot, Inc.
Notes to Consolidated Financial Statements (continued)
As of December 29, 2001, the weighted average fair values of options granted during 2001, 2000 and 1999 were $3.92, $4.18, and $8.24, respectively.
The following table summarizes information about options outstanding at December 29, 2001.
Options Outstanding Options Exercisable
Weighted
Average Remaining Weighted Weighted
Range of Number Contractual Life Average Number Average
Exercise Prices Outstanding (in years) Exercise Price Exercisable Exercise Price
$ 0.17–$ 1.95 25,840 4.3 $ 0.55 25,840 $ 0.55
1.96– 2.94 32,186 0.6 2.55 32,186 2.55
2.95– 4.42 7,200 0.7 3.67 7,200 3.67
4.43– 6.64 588,921 6.5 6.11 292,706 5.80
6.65– 9.97 11,510,448 7.7 8.52 3,568,083 8.52
9.98– 14.96 9,974,697 6.3 11.52 6,408,944 11.93
14.97– 22.45 10,604,500 6.1 18.30 9,173,244 18.52
22.46– 25.00 2,256,729 6.6 24.19 1,384,143 24.17
$ 0.17–$25.00 35,000,521 6.7 $13.29 20,892,346 $14.94
Note I—Capital Stock
Preferred Stock
As of December 29, 2001, there were 1,000,000 shares of $.01 par value pre-
ferred stock authorized of which none are issued or outstanding.
Stockholder Rights Plan
Effective September 4, 1996, we adopted a Stockholder Rights Plan (the “Rights
Plan”). Under this Rights Plan, each of our stockholders is issued one right to
acquire one one-thousandth of a share of our Junior Participating Preferred
Stock, Series A at an exercise price of $63.33, subject to adjustment, for each
outstanding share of Office Depot common stock they own. These rights are
only exercisable if a single person or company were to acquire 20% or more
of our outstanding common stock or if we announced a tender or exchange
offer that would result in 20% or more of our common stock being acquired.
If we are acquired, each right, except those of the acquirer, can be exchanged
for shares of our common stock with a market value of twice the exercise
price of the right. In addition, if we become involved in a merger or other
business combination where (1) we are not the surviving company, (2) our
common stock is changed or exchanged, or (3) 50% or more of our assets or
earning power is sold, then each right, except those of the acquirer, and an
amount equal to the exercise price of the right can be exchanged for shares of
our common stock with a market value of twice the exercise price of the right.
We may redeem the rights for $0.01 per right at any time prior to
an acquisition.
Treasury Stock
In August 1999, the Board approved a $500 million stock repurchase pro-
gram. This program was completed by the end of 1999, with the purchase
of 46.7 million shares of our stock at a total cost of $500 million plus commis-
sions. During 2000, the Board approved additional stock repurchases of up
to $300 million. This program was completed during 2000 with the repurchase
of 35.4 million shares of stock. In 2001, the Board approved stock repurchases
of up to $50 million a year until cancelled by the Board. During 2001, approx-
imately 252,000 shares were repurchased at a total cost of $4.2 million
plus commissions.