Sunbeam 2007 Annual Report Download - page 100
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A summary of the Company’s stock option activity in 2007, 2006 and 2005 is as follows (shares in
thousands):
2007 2006 2005
Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
Options outstanding, beginning of year .......... 4,101.2 $17.38 4,695.5 $16.92 4,101.3 $11.52
Granted ................................... — — 100.0 33.37 1,241.8 30.88
Exercised ................................. (457.4) 18.39 (447.1) 9.94 (434.7) 33.03
Cancelled ................................. (212.6) 23.41 (247.2) 28.54 (212.9) 14.52
Options outstanding, end of year ............... 3,431.2 $16.88 4,101.2 $17.38 4,695.5 $16.92
Options exercisable, end of year ............... 2,484.4 $12.07 2,694.1 $12.74 2,022.1 $ 9.70
Significant option grants outstanding at December 31, 2007 and related weighted average price and life
information is as follows (shares in thousands):
Options outstanding Options exercisable
Exercise Price
Number
outstanding
Weighted
average
exercise price
Weighted average
remaining life (years)
Number
exercisable
Weighted
average
exercise price
$ 2.43 – $ 8.19 ................... 116.9 $ 5.24 4.13 116.9 $ 5.24
$ 8.60 – $13.14 ................... 1,891.9 9.34 4.67 1,891.9 9.34
$14.30 – $21.40 ................... 180.5 18.87 6.09 180.5 18.87
$21.90 – $28.57 ................... 345.9 28.11 5.33 295.1 28.11
$29.46 – $37.99 ................... 896.0 31.16 4.44 — —
3,431.2 $16.88 2,484.4 $12.07
The Company does not use cash to settle any of its options or restricted share awards and when available
issues shares from its treasury stock instead of issuing new shares. The total intrinsic value of options exercised
for 2007, 2006 and 2005, based upon the average market price during the period, was approximately $9.9, $10.5,
and $7.6, respectively.
The weighted average assumptions used to determine the fair value of options granted is as follows:
2007 2006 2005
Expected volatility ................................................. — % 36% 30%
Risk-free interest rates .............................................. — % 3.5% 4.0%
Expected life (in years) ............................................. — 5.0 6.7
Restricted Shares of Common Stock
The Company issues restricted share awards whose restrictions lapse upon either the passage of time
(service vesting), achieving performance targets, attaining Company common stock price thresholds, or some
combination of these restrictions. For those restricted share awards with common stock price thresholds, the fair
values were determined using a Monte Carlo simulation embedded in a lattice model. The fair value for all other
restricted share awards were based on the closing price of the Company’s common stock on the dates of grant.
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