iHeartMedia 2003 Annual Report Download - page 85
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The following table presents a summary of the Company’s stock options outstanding at and stock option activity during the years ended
December 31, 2003, 2002 and 2001 (“Price” reflects the weighted average exercise price per share):
There were 43.7 million shares available for future grants under the various option plans at December 31, 2003. Vesting dates range from
February 2004 to October 2008, and expiration dates range from February 2004 to October 2013 at exercise prices and average contractual
livesasfollows:
The fair value for these options was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted
average assumptions for 2003, 2002 and 2001:
85
(In thousands, except per share data)
2003 2002 2001
Options Price Options Price Options Price
Outstanding, beginning of year 42,943 $44.57 47,147 $43.92 40,112 $41.10
Assumed in acquisitions —
—
114 51.61 — —
Granted 4,955 36.75 262 34.76 11,389 51.27
Exercised (1) (2,477) 18.96 (2,508) 21.33 (2,928) 25.15
Forfeited (2,327)54.26 (2,072)56.73 (1,426)57.91
Outstanding, end of year 43,094 $44.64 42,943 $44.57 47,147 $43.92
Exercisable, end of year 27,267 29,614 32,385
Weighted average fair value per option granted $ 17.29 $ 16.35 $ 25.01
(1) The Company received an income tax benefit of $20.6 million, $22.5 million and $32.8 million relating to the options exercised during
2003, 2002 and 2001, respectively. Such benefits are recorded as adjustments to “Additional paid-in capital” in the statement of
shareholders’ equity.
(In thousands of shares)
Weighted
Average Weighted Weighted
Outstanding Remaining Average Exercisable Average
as of Contractual Exercise as of Exercise
Range of Exercise Prices 12/31/03 Life Price 12/31/03 Price
$.01 — $ 10.00 1,332 3.8 $5.2696 1,332 $5.2696
10.01 — 20.00 1,097 2.2 14.0861 1,097 14.0861
20.01 —30.00 4,569 4.4 25.5974 4,185 25.4552
30.01 — 40.00 6,323 6.6 35.9601 1,918 34.1589
40.01 —50.00 15,521 5.0 46.4916 11,176 46.6704
50.01 — 60.00 10,665 4.8 55.9275 6,174 55.2370
60.01 —70.00 2,862 3.7 66.4318 796 66.9156
70.01 — 80.00 406 6.3 76.6902 326 77.0524
80.01 —90.00 283 5.3 83.8277 232 83.0824
90.01 — 100.10 36 1.9 97.4699 31 98.2393
43,094 5.0 $44.6476 27,267 $42.0231
2003 2002 2001
Risk-free interest rate 2.91% -4.03% 2.85% - 5.33% 4.9% - 5.2%
Dividend yield 0% - 1.01% 0% 0%
Volatility factors 43% - 47% 36% - 49% 36% - 37%
Weighted average expected life 5 - 7.5 3.5 - 7.5 6 - 8