Cabela's 2013 Annual Report Download - page 110

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
The fair value of options granted was estimated on the date of the grant using the Black-Scholes option
pricing model. The expected volatility for 2013, 2012, and 2011 was based on the historical volatility of the
Company’s common stock. The fair value of options in the years presented was estimated using the Black-Scholes
model with the following weighted average assumptions:
2013 2012 2011
Risk-free interest rate based on the U.S. Treasury yield curve 0.76% 0.84% 1.52 to 2.16%
Dividend yield - - -
Expected volatility 47% 48% 46%
Weighted average expected life (in years) 5.9 4.7 5.0
Weighted average grant date fair value of options granted $ 22.60 $ 15.72 $ 11.30
Employee Stock Plans – Effective June 5, 2013, the shareholders of the Company approved the Cabela’s
Incorporated 2013 Stock Plan (the “2013 Stock Plan”). The 2013 Stock Plan replaces the Cabela’s Incorporated
2004 Stock Plan (the “2004 Stock Plan”) and provides for the grant of incentive stock options, non-statutory stock
options (“NSOs”), stock appreciation rights, performance stock, performance units, restricted stock, and restricted
stock units to employees and consultants. Non-employee directors are eligible to receive any type of award offered
under the 2013 Stock Plan except incentive stock options. Awards granted under the 2013 Stock Plan have a term of
no greater than ten years from the grant date and become exercisable under the vesting schedule determined at the
time of grant. As of December 28, 2013, the maximum number of shares available for awards under the 2013 Stock
Plan was 3,949,030.
As of December 28, 2013, there were 3,410,394 awards outstanding under the 2004 Plan and 50,970 awards
outstanding under the 2013 Plan. No future grants of awards will be made under the 2004 Plan. To the extent
available, we will issue treasury shares for the exercise of stock options before issuing new shares.
Option Awards. During 2013, there were 206,870 NSOs granted to employees under the 2004 Plan at an
exercise price of $50.91 per share and 30,000 NSOs granted to non-employee directors at an exercise price of
$67.69 per share. These options have an eight-year term and vest over four years for employees and one year for
non-employee directors. In addition, the Company issued 64,000 premium-priced NSOs to its President and Chief
Executive Officer under the 2004 Plan at an exercise price of $58.55 (which was equal to 115% of the closing price
of the Company’s common stock on the New York Stock Exchange on March 1, 2013). The premium-priced NSOs
vest in three equal annual installments beginning on March 2, 2017, and expire on March 2, 2021.
Nonvested Stock and Stock Unit Awards. During 2013, the Company issued 344,345 units of nonvested stock
under the 2004 Plan to employees at a weighted average fair value of $50.87 per unit. During 2013, the Company
issued 20,600 units of nonvested stock under the 2013 Stock Plan to employees at a fair value of $69.98 per unit.
These nonvested stock units vest evenly over four years on the grant date anniversary based on the passage of time.
On March 2, 2013, the Company also issued 55,400 units of performance-based restricted stock units under the
2004 Plan to certain executives at a fair value of $50.91 per unit. These performance-based restricted stock units
will begin vesting in four equal installments on March 2, 2014, since the performance criteria were achieved.
On June 6, 2013, the Company granted 370 units of nonvested stock to a non-employee director of WFB
under the 2013 Stock Plan at a fair value of $67.69 per unit. These nonvested stock units vest over one year.