Walgreens 2004 Annual Report Download - page 33

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The Walgreen Co. 1982 Employees Stock Purchase Plan permits eligible employees to purchase common stock at 90% of the fair
market value at the date of purchase. Employees may purchase shares through cash purchases, loans or payroll deductions up to
certain limits. The aggregate number of shares for which all participants have the right to purchase under this Plan is 74,000,000.
As of August 31, 2004, 9,248,920 shares were available for future purchase.
The Walgreen Co. Restricted Performance Share Plan provides for the granting of shares of common stock to certain key
employees, subject to restrictions as to continuous employment except in the case of death, normal retirement or total and
permanent disability. Restrictions generally lapse over a four-year period from the date of grant. Compensation expense is
recognized in the year of grant. Shares may be granted for an aggregate of 32,000,000 shares of common stock. As of August 31,
2004, 23,189,793 shares were available for future grants. The number of shares granted was 116,898 in 2004, 79,869 in 2003, and
81,416 in 2002. Compensation expense related to the Pl
an was $8.1 million in fiscal 2004, $5.5 million in fiscal 2003 and $5.4 million in
fiscal 2002.
The Walgreen Co. Nonemployee Director Stock Plan provides that each Nonemployee Director receives an equity grant of shares
each year on November 1. The numbe
r of shares granted shall be determined by dividing $80,000 by the price of a share of common
stock on November 1. During the term of the Plan, each Nonemployee Director will also receive fifty percent of his or her quarterly
retainer in the form of shares, which may be deferred into an equal number of stock units. In addition, a Nonemployee Director may
elect to receive all or a portion of the cash component of his or her quarterly retainer and meeting fees in the form of deferred stock
units or to have such amounts placed in a deferred cash compensation account. Each Nonemployee Director received a grant of
2,298 shares in 2004, 2,361 shares in 2003 and 2,000 shares in 2002.
A summary of information relative to the company's stock option plans follows:
Options Outstanding Options Exercisable
Shares
Weighted-
Average
Exercise Price Shares
Weighted-
Average
Exercise Price
August 31, 2001 36,256,124 $20.24 14,824,227 $ 7.40
Granted 2,886,365 34.05
Exercised (3,525,955) 7.28
Canceled/Forfeited (1,315,499) 30.32
August 31, 2002 34,301,035 22.35 13,786,657 9.71
Granted 17,701,356 28.86
Exercised (2,747,055) 8.79
Canceled/Forfeited (2,924,991) 28.95
August 31, 2003 46,330,345 25.23 26,306,122 21.57
Granted 2,953,230 32.33
Exercised (5,867,982) 12.81
Canceled/Forfeited (3,269,011) 28.54
August 31, 2004 40,146,582 $27.29 22,103,057 $24.84
The following table summarizes information concerning options outstanding and exercisable as of August 31, 2004:
Options Outstanding Options Exercisable
Range of
Exercise
Prices
Number
Outstanding
at 8/31/04
Weighted-
Average
Remaining
Contractual Life
Weighted-
Average
Exercise Price
Number
Exercisable at
8/31/04
Weighted-
Average
Exercise Price
$ 4 to 24 8,965,668 3.13 yrs. $14.32 8,965,668 $14.32
25 to 30 17,975,533 7.31 28.37 7,729,842 29.17
31 to 46 13,205,381 7.39 34.64 5,407,547 36.09
$ 4 to 46 40,146,582 6.40 yrs. $27.29 22,103,057 $24.84