Nike 2006 Annual Report Download - page 63

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NIKE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following summarizes the stock option transactions under plans discussed above:
Shares
Weighted
Average
Option
Price
(In thousands)
Options outstanding May 31, 2003 ................................ 19,699 $44.82
Exercised ................................................ (5,526) 42.67
Forfeited ................................................. (579) 47.14
Granted .................................................. 5,215 52.14
Options outstanding May 31, 2004 ................................ 18,809 47.42
Exercised ................................................ (4,438) 46.34
Forfeited ................................................. (435) 52.65
Granted .................................................. 5,424 73.92
Options outstanding May 31, 2005 ................................ 19,360 54.98
Exercised ................................................ (4,026) 49.35
Forfeited ................................................. (892) 71.49
Granted .................................................. 5,774 87.36
Options outstanding May 31, 2006 ................................ 20,216 $64.62
Options exercisable at May 31,
2004 .................................................... 8,177 $45.00
2005 .................................................... 7,339 46.02
2006 .................................................... 8,301 51.35
The following table sets forth the exercise prices, the number of options outstanding and exercisable and the
remaining contractual lives of the Company’s stock options at May 31, 2006:
Options Outstanding
Exercise Price
Number of
Options
Outstanding
Weighted
Average
Exercise Price
Weighted
Average
Contractual Life
Remaining
Options Exercisable
Number of
Options
Exercisable
Weighted
Average
Exercise Price
(In thousands) (Years) (In thousands)
$27.69-$48.65 .................. 2,850 $39.31 4.24 2,839 $39.30
48.98- 54.05 .................. 6,181 50.81 6.64 3,108 50.46
54.25- 71.92 .................. 1,167 56.67 3.24 1,111 56.08
73.21- 73.21 .................. 4,319 73.21 8.13 937 73.21
74.88- 90.85 .................. 5,699 87.38 8.85 306 88.20
In September 2001, the Company’s shareholders approved the establishment of an Employee Stock
Purchase Plan (“ESPP”) under which 3.0 million shares of Class B Common Stock are provided for issuance to
employees. The plan qualifies as a noncompensatory employee stock purchase plan under Section 423 of the
Internal Revenue Code. In February 2003, the Company’s Board of Directors approved a Foreign Subsidiary
ESPP under which 1.0 million shares of Class B Common Stock are provided for issuance to employees.
Employees are eligible to participate through payroll deductions in amounts ranging from 1% to 10% of their
compensation not to exceed limitations set out under Section 423. At the end of each six-month offering period,
shares are purchased by the participants at 85% of the lower of the fair market value at the beginning or the end
of the offering period. Under the ESPPs 0.4 million, 0.3 million, and 0.3 million shares were issued during the
years ended May 31, 2006, 2005, and 2004, respectively.
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