F-17
L I L L I A N V E R N O N
10.
Stock Compensation Plans--(continued)
The fair value of each option grant for both plans are estimated on the date of grant using the
Black-Scholes option-pricing model with the following assumptions:
Fiscal Years Ended
February 23,
2002
February 24,
2001
February 26,
2000
Range of expected volatility . . . . . . . . . . . . . . . .
32.4%32.9%
31.0%
29.3%
Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.8%
3.4%
2.3%
Range of risk-free interest rates. . . . . . . . . . . . . .
3.5%3.8%
4.5%
6.2%
Expected option term . . . . . . . . . . . . . . . . . . . . .
5 yrs.
5 yrs.
5 yrs.
Forfeiture rate:
Performance Unit Plan . . . . . . . . . . . . . . . . .
25.0%
25.0%
25.0%
Non-Employee Director Plan. . . . . . . . . . . .
6.0%
6.0%
6.0%
A summary of the Company's stock option activity for the three years ended February 23, 2002
follows:
Fiscal Years Ended
February 23, 2002
February 24, 2001
February 26, 2000
Number Of
Shares
Weighted
Average
Exer. Price
Number Of
Shares
Weighted
Average
Exer. Price
Number Of
Shares
Weighted
Average
Exer. Price
Outstanding at beginning
of year . . . . . . . . . . . . . . .
1,429,600
$13.29
1,167,501
$14.77
978,004
$14.99
Granted. . . . . . . . . . . . . . . .
439,000
6.96
467,500
9.79
276,500
13.86
Exercised . . . . . . . . . . . . . .
--
--
--
--
(23,867)
13.36
Forfeited . . . . . . . . . . . . . . .
(132,350)
11.83
(205,401)
13.78
(63,136)
14.68
Outstanding at end of year.
1,736,250
$11.80
1,429,600
$13.29
1,167,501
$14.77
Options exercisable at
year-end . . . . . . . . . . . . .
1,025,168
875,591
822,498
Weighted-average fair
value of options granted
during the year . . . . . . . .
$
1.05
$
1.51
$
2.58
The following table summarizes information about stock options outstanding at February 23,
2002:
Options Outstanding
Options Exercisable
Range of
Exercise Prices
Shares
Outstanding
Weighted Avg.
Remaining
Contractual
Life
Weighted
Average
Exer. Price
Shares
Exercisable
Weighted
Average
Exer. Price
$ 6.92 9.82 . . . . . . . .
744,250
8.7 Yrs.
$ 8.15
106,497
$ 9.73
$10.5015.75 . . . . . . . .
719,000
4.3
13.46
645,671
13.44
$15.9418.13 . . . . . . . .
273,000
4.1
17.37
273,000
17.39
The Company also has an Employee Stock Purchase Plan, with a total of 200,000 shares reserved
for issuance. Under the Employee Stock Purchase Plan, eligible employees can purchase shares
of the Company's stock at the end of each fiscal quarter, at a price equal to 85% of the average
price of the stock on the last trading day of the fiscal quarter. A maximum of $25,000 of
common stock may be purchased by an eligible employee in each calendar year. Under the
Plan, employees elected to purchase 15,754 shares, 17,727 shares, and 22,857 shares in fiscal
2002, 2001, and 2000, respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
