Cabela's 2006 Annual Report Download - page 90

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86
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
The fair value of options in the fiscal years presented was estimated using the Black-Scholes model with the
following weighted average assumptions:
2006 2005 2004
Risk-free interest rate based on U.S. Treasury yield curve in effect at
the grant date ............................................ 5.01% 3.87% to 4.38% 3.63%
Dividend yield .............................................. — — —
Expected volatility .......................................... 50% 50% 50%
Weighted average expected life based on historical information . . . . . . 6.0 years 4.5 years 4.5 years
Weighted average grant date fair value of options granted . . . . . . . . . . . $10.45 $9.14 $10.05
Information relating to stock options is as follows for fiscal 2006:
All Options Non Vested Options
Options
Available
for Grant
Number
of Options
Weighted
Average
Exercise
Price
Number
of Options
Weighted
Average
Grant Date
Fair Value
Outstanding – beginning of fiscal 2006 . . . . . . . . . . . 751,979 4,695,748 $12.36 3,114,104 $ 4.56
Granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (884,500) 884,500 19.35 884,500 10.45
Vested.................................. — — — (1,054,492) 3.64
Exercised ............................... — (497,946) 6.12 — —
Forfeited (1) (2) . . . . . . . . . . . . . . . . . . . . . . . . . . 171,955 (194,893) 18.58 (110,513) 7.91
Outstanding – end of fiscal 2006 . . . . . . . . . . . . . . . . 39,434 4,887,409 $14.01 2,833,599 $ 6.61
(1) Options forfeited under the 1997 Plan do not become available for grant under the 2004 plan.
(2) Options forfeited under the 2004 Plan are immediately available for grant.
Stock options outstanding at the end of fiscal 2006, 2005 and 2004 were comprised of 1,527,692, 1,876,699
and 1,943,424 of incentive stock options and 3,359,717, 2,819,053 and 2,194,071 of nonqualified stock options,
respectively. There were 2,053,810, 1,581,644 and 989,425 options exercisable at the end of fiscal 2006, 2005 and
2004, respectively. Of the amounts forfeited in fiscal 2006, 76,880 expired due to time limits for exercises imposed
on employees who voluntarily terminated employment. The total fair value of shares vested was $3,843, $6,304 and
$4,086 in fiscal 2006, 2005 and 2004, respectively.
Shares
Weighted
Average
Exercise Price
Weighted
Average
Fair Value
Aggregate
Intrinsic
Value
Weighted Average
Remaining
Contractual Life
At December 30, 2006:
Vested and exercisable . . . . . . . . . . . . . . . . 2,053,810 $13.89 $5.91 $21,034 5.45 years
Non vested . . . . . . . . . . . . . . . . . . . . . . . . . . 2,833,599 14.10 6.61 28,197 6.23 years
Total outstanding . . . . . . . . . . . . . . . . . . . . . 4,887,409 14.01 6.32 $49,231 5.90 years
Expected to vest after
December 30, 2006 . . . . . . . . . . . . . . . . . . . 2,701,731 $13.85 $6.44 $29,502 6.12 years
The aggregate intrinsic value of awards exercised was $3,473, $1,000 and $13,711 during fiscal 2006, 2005 and
2004, respectively. Based on the Company’s closing stock price of $24.77 as of December 30, 2006, the total number
of in-the-money awards exercisable as of December 30, 2006, was approximately 2,049,810.