Safeway 2008 Annual Report Download - page 77

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Activity in the Company’s stock option plans for the three-year period ended January 3, 2009 was as follows:
Options
Weighted-
average
exercise price
Aggregate
intrinsic value
(in millions)
Outstanding, year-end 2005 34,865,744 $ 25.23 $ 139.3
2006 Activity:
Granted 7,223,122 23.51
Canceled (1,388,435) 26.00
Exercised (2,725,654) 15.80
Outstanding, year-end 2006 37,974,777 $ 25.59 $ 431.2
2007 Activity:
Granted 7,067,078 35.10
Canceled (1,963,124) 27.04
Exercised (6,673,669) 15.84
Outstanding, year-end 2007 36,405,062 $ 29.18 $ 299.3
2008 Activity:
Granted 6,939,192 29.22
Canceled (3,326,524) 35.48
Exercised (1,418,876) 20.45
Outstanding, year-end 2008 38,598,854 $ 29.02 $ 57.3
Exercisable, year-end 2006 17,885,299 $ 29.69 $ 175.3
Exercisable, year-end 2007 16,368,093 32.86 120.4
Exercisable, year-end 2008 19,117,930 30.32 36.9
Vested and expected to vest, year-end 2008 (1) 35,131,250 $ 29.15 $ 53.7
(1) The remaining weighted-average contractual life of these options is 3.0 years.
Weighted-average fair value of options granted during the year:
2006 $6.75
2007 9.90
2008 8.74
The total intrinsic value of options exercised was $13.5 million in 2008 and $120.2 million in 2007. As of year-end 2008,
there was $124.8 million of total unrecognized compensation cost related to nonvested stock-based compensation
arrangements granted under the Company’s stock option plans. That cost is expected to be recognized over a weighted
average period of 1.5 years.
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