Pier 1 2011 Annual Report Download - page 59

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
provided that a maximum of 14,500,000 shares of common stock could be issued under the 1999 Stock Plan, of
which not more than 250,000 shares could be issued under the Director Deferred Stock Program. The options
issued to employees vest equally over a period of four years, while non-employee directors’ options were fully
vested at the date of issuance. Both options have a term of ten years from the grant date. The employee options
are fully vested upon death, disability, or retirement of an employee, or under certain conditions, such as a
change in control of the Company, unless the Board of Directors determines otherwise prior to a change of
control event. As of February 26, 2011, there were no shares available for grant under the 1999 Stock Plan. All
future stock option grants will be made from shares available under the 2006 Plan. Additionally, outstanding
options covering 3,452,125 and 4,885,250 shares were exercisable under the 1999 Stock Plan at fiscal years
ended 2011 and 2010, respectively.
Under the 1989 Employee Stock Option Plan, options vest over a period of four to five years and all have
a term of ten years from the grant date. As of February 26, 2011 and February 27, 2010, outstanding options
covering 264,000 and 294,000 shares were exercisable, respectively. As a result of the expiration of the plan
during fiscal 2005, no shares are available for future grant. The plan was subject to adjustments for stock
dividends and certain other changes to the Company’s capitalization.
A summary of stock option transactions related to the Company’s stock option grants during the three
fiscal years ended February 26, 2011 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 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
Options granted 6,000 8.64 7.16
Options exercised (588,000) 7.77
Options cancelled or expired (1,394,075) 15.43
Outstanding at February 26, 2011 7,210,150 12.14 6,897,450 12.36
For shares outstanding at February 26, 2011 Weighted
Average
Remaining
Contractual
Life (in years)
Weighted
Average
Exercise Price-
Exercisable
SharesRanges of Exercise Prices
Total
Shares
Weighted
Average
Exercise
Price
Shares
Currently
Exercisable
$4.24 - $6.69 2,060,000 $ 6.65 6.02 2,037,500 $ 6.67
$7.42 - $11.27 1,884,900 7.75 4.53 1,594,700 7.79
$11.50 - $17.25 1,522,000 16.15 3.15 1,522,000 16.15
$18.49 - $21.00 1,743,250 19.87 1.82 1,743,250 19.87
As of February 26, 2011, the weighted average remaining contractual term for outstanding and
exercisable options was 4.01 years and 3.87 years, respectively. The aggregate intrinsic value for outstanding and
exercisable options was $10,282,000 and $9,530,000, respectively at fiscal 2011 year end. The total intrinsic
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