Cabela's 2005 Annual Report Download - page 103

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollar Amounts in Thousands Except Share and Per Share Amounts)
becomes exercisable if a termination event occurs that would cause the stock option to be forfeited. The strike
price for the call option is the lower of the employee’s exercise price or the fair value of the stock on the day the
call is exercised. At the end of fiscal year 2005, 238,546 shares had been exercised prior to vesting. The
estimated value of the call options is approximately $932 at the end of fiscal year 2005. All of these shares have
been included in the tables below. There were no termination events related to these shares that caused any of the
call options to be exercisable in fiscal 2005. On January 6, 2006, one of the Company’s employees with
exercised unvested shares retired. As of January 6, 2006, the 18,350 exercised unvested shares held by this
employee were immediately vested as part of this employee’s retirement agreement. At the time of this
employee’s retirement, the value of the call option for the 18,350 shares was $70 and the value of the stock
subject to the call option was $310. The Company has elected not to exercise its call option and will recognize a
charge to compensation expense for the modification of the stock options under Statement 123R in fiscal 2006.
In addition, in 1997 the Company granted 1,101,000 nonqualified options to purchase Class A common
stock to two employees of the Company pursuant to separate stock option agreements between the Company and
the applicable employee. These options were not issued under the 1997 Plan and all of these options have been
exercised.
Information relating to stock options at fiscal years ended 2005, 2004 and 2003 is as follows:
2005 2004 2003
Number
of Options
Weighted
Average
Exercise
Price
Number
of Options
Weighted
Average
Exercise
Price
Number
of Options
Weighted
Average
Exercise
Price
Outstanding—beginning .............. 4,137,495 $11.06 4,581,580 $ 7.07 7,042,730 $ 4.88
Granted ....................... 688,000 19.99 1,341,881 17.29 930,345 11.20
Exercised ...................... (89,377) 8.35 (1,785,966) 5.49 (3,217,170) 3.45
Forfeited ...................... (40,370) 17.60 — — (174,325) 7.50
Outstanding—ending ................ 4,695,748 $12.36 4,137,495 $11.06 4,581,580 $ 7.07
There were 1,581,644, 989,425 and 1,674,944 options exercisable at fiscal years ended 2005, 2004 and
2003, respectively.
Stock options outstanding at fiscal years ended 2005, 2004 and 2003 were comprised of 1,876,699,
1,943,424 and 3,194,614 of incentive stock options and 2,819,053, 2,194,071 and 1,386,966 of nonqualified
stock options, respectively.
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