World Fuel Services 2002 Annual Report Download - page 63

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The following table summarizes the exercise prices of our stock options outstanding and exercisable at December 31,
2002 (in thousands, except exercise price data and contractual life):
Weighted-
Average Weighted- Weighted-
Remaining Average Average
Contractual Exercise Exercise
Range of Exercise Price Options Life (in Years) Price Options Price
$ 6.89 to $9.25 459 6.8 7.96$ 392 7.78$
$10.75 to $13.69 333 4.9 11.65 246 11.56
$16.71 to $21.63 411 5.1 20.10 311 20.39
Total 1,203 13.13$ 949 12.89$
Options Outstanding Options Exercisable
Effective April 1, 2002, we adopted the accounting provision of SFAS No. 123, “Accounting for Stock-Based
Compensation,” as amended by SFAS No. 148, “Accounting for Stock-Based Compensation - Transition and Disclosure, an
amendment of FASB Statement No. 123,” to account for stock options granted to our employees and non-employee directors
using the prospective method. Under the fair value recognition provision, as of the grant date, we recorded the fair value of
the stock option granted as Unearned deferred compensation, which is amortized over the minimum vesting period of each
individual award as compensation cost. For the nine months ended December 31, 2002, we granted stock options to
purchase 81 thousand shares of our common stock at an aggregate fair value of $215 thousand and recorded amortization of
$59 thousand for employee and non-employee director compensation cost. As of December 31, 2002, the unearned deferred
compensation for stock options granted to our employees and non-employee directors was $156 thousand.
For stock options granted prior to April 1, 2002, we continued using the intrinsic value method of APB Opinion No. 25,
“Accounting for Stock Issued to Employee,” and related interpretations. Accordingly, no compensation expense has been
recognized for such stock options when the exercise price was at or above market price of our common stock on the date of
grant. As required, the following table reflects pro forma net income and diluted earnings per share had stock options
granted prior to April 1, 2002 been accounted for under the fair value recognition provision of SFAS 123 (in thousands,
except earnings per share):
For the Nine Months
Ended December 31, For the Year Ended March 31,
2002 2001 2002 2001 2000
Net income:
As reported 9,872$ 12,762$ 17,235$ 10,634$ 9,635$
Pro forma 9,770 12,629 17,057 10,199 9,152
Basic earnings per share:
As reported 0.94$ 1.23$ 1.66$ 1.00$ 0.80$
Pro forma 0.93 1.22 1.64 0.96 0.76
Diluted earnings per share:
As reported 0.91$ 1.20$ 1.62$ 1.00$ 0.80$
Pro forma 0.90 1.19 1.60 0.96 0.76
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