Petsmart 2010 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2010 Petsmart annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

Shares
Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
Year Ended February 1, 2009
Outstanding at beginning of year ..... 6,322 $19.10
Granted ....................... 1,816 $19.10
Exercised ...................... (755) $10.42 $11,684
Forfeited/cancelled ............... (303) $25.12
Outstanding at end of year ......... 7,080 $19.77 4.56 $19,736
Vested and expected to vest at end of
year ........................ 6,367 $19.35 4.45 $19,732
Exercisable at end of year .......... 4,238 $17.60 3.84 $19,719
Restricted Stock
We may grant restricted stock under the 2006 Equity Incentive Plan. Under the terms of the plan, employees
may be awarded shares of our common stock, subject to approval by the Board of Directors. The employee may be
required to pay par value for the shares depending on their length of service. The shares of common stock awarded
under the plan are subject to a reacquisition right held by us. In the event that the award recipient’s employment by,
or service to, us is terminated for any reason, we are entitled to simultaneously and automatically reacquire for no
consideration all of the unvested shares of restricted common stock previously awarded to the recipient.
Restricted stock activity in our restricted stock plan is as follows (in thousands):
Shares
Weighted-Average
Grant Date
Fair Value Shares
Weighted-Average
Grant Date
Fair Value Shares
Weighted-Average
Grant Date
Fair Value
January 30, 2011 January 31, 2010 February 1, 2009
Year Ended
Nonvested at beginning of year . . 1,898 $24.38 2,685 $25.50 2,391 $27.92
Granted ................... 39 $32.47 82 $18.05 978 $19.33
Vested .................... (611) $23.94 (599) $28.58 (367) $24.85
Forfeited .................. (138) $24.53 (270) $24.29 (317) $25.48
Nonvested at end of year ...... 1,188 $24.85 1,898 $24.38 2,685 $25.50
The total fair value of restricted stock which vested during 2010, 2009 and 2008 was $17.2 million,
$11.0 million, and $7.2 million, respectively.
Performance Share Units
The 2009 Performance Share Unit Program, approved by the Board of Directors in January 2009, provides for
the issuance of performance share units, or “PSUs,” under the 2006 Equity Incentive Plan to executive officers and
certain other members of our management team based upon an established performance goal. For units granted in
2010, the performance goal was defined as a specified end-of-year pre-tax income. The actual number of PSUs
awarded to each participant was set at a minimum threshold of 50% of his or her target number of PSUs, regardless
of performance results, and could increase up to 150% based upon performance results. Actual performance against
the end-of-year pre-tax income target was approved by the Board in March 2011, and qualified participants received
150% of their target awards. For units granted in 2009, the performance goal was defined as a specified end-of-year
F-21
PetSmart, Inc. and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)