Safeway 2007 Annual Report Download - page 75

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Activity in the Company’s stock option plans for the three-year period ended December 29, 2007 was as follows:
Options
Weighted-
average
exercise price
Aggregate
intrinsic value
(in millions)
Outstanding, year-end 2004 26,814,561 $ 26.37
2005 Activity:
Granted 11,515,944 20.19
Canceled (1,575,189) 28.55
Exercised (1,889,572) 8.12
Outstanding, year-end 2005 34,865,744 $ 25.23 $ 139.3
2006 Activity:
Granted 7,223,122 23.51
Canceled (1,388,435) 26.00
Exercised (2,725,654) 15.80
Outstanding, year-end 2006 37,974,777 $ 25.59 $ 431.2
2007 Activity:
Granted 7,067,078 35.10
Canceled (1,963,124) 27.04
Exercised (6,673,669) 15.84
Outstanding, year-end 2007 36,405,062 $ 29.18 $ 299.3
Exercisable, year-end 2005 16,239,331 $ 29.16 $ 81.9
Exercisable, year-end 2006 17,885,299 29.69 175.3
Exercisable, year-end 2007 16,368,093 32.86 120.4
Expected to vest, year-end 2007(1) 16,510,462 26.17 147.4
(1) The remaining weighted-average contractual life of these options is 3.9 years.
Weighted-average fair value of options granted during the year:
2005 $6.32
2006 6.75
2007 9.90
The total intrinsic value of options exercised was $120.2 million in 2007 and $32.0 million in 2006. As of year-end 2007,
there was $119.9 million of total unrecognized compensation cost related to nonvested stock-based compensation
arrangements granted under the Company’s stock option plans. That cost is expected to be recognized over a weighted
average period of 1.6 years.
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