Pier 1 2010 Annual Report Download - page 69

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
A summary of stock option transactions related to the stock option plans during the three fiscal years
ended February 27, 2010 is as follows:
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Fair Value at
Date
of Grant
Exercisable Shares
Number of
Shares
Weighted
Average
Exercise Price
Outstanding at March 3, 2007 13,668,125 $ 13.95 10,797,625 $ 15.31
Options granted 724,000 7.71 $ 3.31
Options exercised (50,775) 7.43
Options cancelled or expired (1,763,875) 14.54
Outstanding at March 1, 2008 12,577,475 13.53 10,983,225 14.18
Options granted 617,300 7.29 3.42
Options exercised (2,875) 6.79
Options cancelled or expired (1,481,975) 14.43
Outstanding at February 28, 2009 11,709,925 13.09 10,385,625 13.72
Options granted 1,000,000 6.69 0.33
Options exercised - -
Options cancelled or expired (3,523,700) 13.17
Outstanding at February 27, 2010 9,186,225 12.36 7,440,275 13.62
For shares outstanding at February 27, 2010 Weighted
Average
Remaining
Contractual
Life (in years)Ranges of Exercise Prices
Total
Shares
Weighted
Average
Exercise
Price
Shares
Currently
Exercisable
Weighted
Average
Exercise Price-
Exercisable
Shares
$4.24 - $6.69 2,060,000 $ 6.65 7.01 1,022,500 $ 6.67
$7.42 - $11.27 2,947,475 8.08 5.09 2,239,025 8.24
$11.50 - $17.25 1,908,500 16.21 4.64 1,908,500 16.21
$18.49 - $21.00 2,270,250 19.87 3.11 2,270,250 19.87
As of February 27, 2010, the weighted average remaining contractual term for outstanding and
exercisable options was 4.94 years and 4.41 years, respectively. The aggregate intrinsic value for outstanding and
exercisable options was $56,100 and $14,025, respectively at fiscal 2010 year end. The total intrinsic values of
options exercised for the fiscal years ended 2010, 2009, and 2008 were approximately $0, $2,000 and $58,000,
respectively. The intrinsic value of a stock option is the amount by which the market value of the underlying
stock exceeds the exercise price of the option.
The fair value of the stock options is amortized on a straight-line basis as compensation expense over the
vesting periods of the options. The fair values for options granted during the respective period were estimated as
of the date of grant using the Black-Scholes option-pricing model with the following weighted average
assumptions:
2010 2009 2008
Weighted average fair value of options granted $0.33 $3.42 $3.31
Risk-free interest rates 1.70% 2.60% 4.68%
Expected stock price volatility 112.05% 51.29% 42.43%
Expected dividend yields 0.00% 0.00% 0.25%
Weighted average expected lives 4 years 5 years 5 years
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