Staples 2007 Annual Report Download - page 126

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STAPLES, INC. AND SUBSIDIARIES
Notes To Consolidated Financial Statements (Continued)
NOTE H Employee Benefit Plans (Continued)
Stock Options
Information with respect to stock options granted under the above plans is as follows:
Weighted Average Aggregate
Number of Exercise Price Intrinsic Value
Shares Per Share (in thousands)
Outstanding at February 3, 2007 ................ 57,655,917 $16.75
Granted ................................ 5,495,567 24.36
Exercised ............................... (10,126,740) 14.40
Canceled ............................... (1,649,818) 20.64
Outstanding at February 2, 2008 ................ 51,374,926 $17.90 $309,541
Exercisable at February 2, 2008 ................. 34,039,155 $15.63 $282,473
The weighted-average fair values of options granted during fiscal years 2007, 2006 and 2005 were $6.92, $7.12 and
$6.32, respectively.
The following table summarizes information concerning currently outstanding and exercisable options for common
stock:
Options Outstanding Options Exercisable
Weighted
Average
Range of Remaining Weighted
Exercise Number Contractual Average Number Weighted Average
Prices Outstanding Life (Years) Exercise Price Exercisable Exercise Price
$ 0.00 - $ 9.00 477,133 2.47 $ 7.09 477,133 $ 7.09
$ 9.001 - $10.00 4,261,095 3.09 9.73 4,261,095 9.73
$10.001 - $11.00 4,705,160 3.91 10.50 4,705,160 10.50
$11.001 - $13.00 6,631,027 5.03 12.53 6,631,027 12.53
$13.001 - $14.00 1,562,150 2.69 13.36 1,562,150 13.36
$14.001 - $19.00 1,403,751 5.10 17.23 972,387 17.17
$19.001 - $20.00 8,938,927 6.16 19.15 6,341,239 19.15
$20.001 - $21.00 2,818,710 2.55 20.68 2,639,773 20.67
$21.001 - $22.00 10,823,682 7.40 21.31 5,130,609 21.32
$22.001 - $25.00 9,579,119 8.89 24.29 1,294,520 24.04
$25.001 - $28.00 174,172 8.94 26.63 24,062 26.97
$ 0.00 - $28.00 51,374,926 5.97 $17.90 34,039,155 $15.63
The number of exercisable shares was 34.0 million at February 2, 2008, 35.2 million at February 3, 2007 and
36.8 million at January 28, 2006.
For options granted prior to May 1, 2005, the fair value for these options was estimated at the date of grant using a
Black-Scholes option-pricing model. For stock options granted on or after May 1, 2005, the fair value of each award is
estimated on the date of grant using a binomial valuation model. The binomial model considers characteristics of fair
value option pricing that are not available under the Black-Scholes model. Similar to the Black-Scholes model, the
binomial model takes into account variables such as volatility, dividend yield rate, and risk free interest rate. However, in
addition, the binomial model considers the contractual term of the option, the probability that the option will be
exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in
computing the value of the option. For these reasons, the Company believes that the binomial model provides a fair
value that is more representative of actual experience and future expected experience than that value calculated using
the Black-Scholes model.
C-18