Cabela's 2010 Annual Report Download - page 107

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
Employee Stock Plans – The Cabela’s Incorporated 2004 Stock Plan (“the 2004 Plan”) provides for the
granting of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock,
restricted stock units, and other stock-based awards to employees, directors, and consultants. Options granted
under the 2004 Plan have a term of no greater than ten years from the grant date and are exercisable in accordance
with the vesting schedule determined at the time the awards are granted. As of January 1, 2011, there were
5,917,027 shares subject to awards and 3,262,733 shares authorized and available for grant under the 2004 Plan. The
Company’s policy has been to issue new shares for the exercise of stock options. The Company also has 325,297
shares (320,543 of incentive stock options and 4,754 of non-qualified stock options) subject to options under the
1997 Stock Option Plan (“the 1997 Plan”) with no shares available for grant. Options issued expire on the fifth or
the tenth anniversary of the date of the grant under the 1997 Plan.
Option Awards: During 2010, there were 318,700 options granted to employees at a weighted average
exercise price of $16.28 per share and 15,000 options granted to non-employee directors at an exercise price of
$19.47 per share. These options have an eight-year term and vest over three years for employees and one year for
non-employee directors.
Nonvested Stock Awards: During 2010, the Company issued 639,340 units of nonvested stock under the 2004
Plan to employees at a weighted average fair value of $16.22 per unit. These nonvested stock units vest evenly over
three years on the grant date anniversary based on the passage of time. On March 2, 2010, the Company also issued
97,000 units of performance-based restricted stock units under the 2004 Plan to certain executives at a fair value
of $16.18 per unit. These performance-based restricted stock units begin vesting in three equal installments on
March 2, 2011, since the performance goals for 2010 were achieved.
Restricted Stock Awards: On July 7, 2008, 111,324 shares of restricted stock were issued to two executives
under the 2004 Plan. The stock price on the date of grant was $10.48 per share resulting in a fair value of $1,167 of
deferred compensation which is being amortized to compensation expense over a five-year period. Compensation
expense related to these restricted stock awards totaled $233, $233, and $117 in 2010, 2009, and 2008, respectively,
and is included in total share-based compensation expense. The restricted stock vests one-third on the third, fourth,
and fifth anniversaries of the grant date.
The following table summarizes award activity during 2010 for the Company’s two stock plans:
All Awards Non-Vested Awards
Awards
Available
for Grant Number of Awards (1)
Weighted
Average
Exercise
Price Number of Awards (1)
Weighted
Average
Grant Date
Fair Value
Outstanding, beginning of year 4,093,339 6,202,572 $14.21 2,793,225 $5.63
Granted:
Non-qualified stock options (333,700)333,700 16.42 333,700 7.02
Restricted stock awards (including
performance based restricted stock) (736,340)736,340 -736,340 16.21
Vested -(1,327,060)5.49
Exercised -(786,266)7.98
Forfeited (2) 239,434 (244,022)12.82 (100,024)8.97
Outstanding, end of year (3) 3,262,733 6,242,324 13.49 2,436,181 9.08
(1) Excludes restricted stock awards issued in July 2008.