Pier 1 2012 Annual Report Download - page 56

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
A summary of stock option transactions related to the Company’s stock option grants during the three
fiscal years ended February 25, 2012 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 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
Options granted 6,600 11.47 9.43
Options exercised (893,275) 7.97
Options cancelled or expired (588,000) 18.23
Outstanding at February 25, 2012 5,735,475 12.16 5,620,525 12.26
For options outstanding at February 25, 2012
Ranges of Exercise Prices
Total
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (in years)
Shares
Currently
Exercisable
Weighted
Average
Exercise Price-
Exercisable
Shares
$4.24 - $6.69 2,060,000 $ 6.65 5.02 2,052,500 $ 6.66
$7.42 - $11.27 985,625 7.60 5.13 884,775 7.61
$11.47 - $17.25 1,288,600 16.10 2.56 1,282,000 16.13
$18.49 - $21.00 1,401,250 19.87 1.07 1,401,250 19.87
As of February 25, 2012, the weighted average remaining contractual term for outstanding and
exercisable options was 3.52 years and 3.46 years, respectively. The aggregate intrinsic value for outstanding and
exercisable options was $29,972,000 and $28,946,000, respectively, at fiscal 2012 year end. The total intrinsic
value of options exercised for the fiscal years 2012, 2011 and 2010 was approximately $3,557,000, $1,185,000
and $0, 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 value of options granted during the respective period was estimated as of
the date of grant using the Black-Scholes option-pricing model with the following weighted average
assumptions:
2012 2011 2010
Weighted average fair value of options granted $9.43 $7.16 $0.33
Risk-free interest rates 2.31% 2.65% 1.70%
Expected stock price volatility 117.52% 118.88% 112.05%
Expected dividend yields 0.00% 0.00% 0.00%
Weighted average expected lives 5 years 5 years 4 years
48