Walmart 1998 Annual Report Download - page 35

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provide a reliable single measure of the fair value of its associate
stock options. Using the Black-Scholes option valuation model,
the weighted average grant date value of options granted
during the year ended January 31, 1998, was $13 per option.
The effect of applying the fair value method of Statement
123 to the Company’s option plan does not result in net
income and net income per share that are materially different
from the amounts reported in the Company’s consolidated
financial statements as demonstrated below: (Amounts in
millions except per share data)
1998 1997 1996
Pro forma net income $ 3,504 $ 3,042 $ 2,737
Pro forma earnings
per share – basic $ 1.55 $ 1.33 $ 1.19
Pro forma earnings
per share – dilutive $ 1.55 $ 1.32 $ 1.19
Option price Weighted average
Shares per share per share Total
January 31, 1995 17,969,000 $ 2.78-30.62 $ 20.20 $ 362,981,000
Options granted 7,114,000 23.50-24.75 23.61 167,959,000
Options canceled (1,953,000) 3.75-30.82 22.46 (43,873,000)
Options exercised (1,101,000) 2.78-25.38 8.79 (9,678,000)
January 31, 1996 22,029,000 4.94-30.82 21.67 477,389,000
(5,011,000 shares exerciseable)
Options granted 11,466,000 22.25-25.25 23.19 265,931,000
Options canceled (2,110,000) 5.78-30.82 23.27 (49,109,000)
Options exercised (999,000) 4.94-25.75 10.34 (10,327,000)
January 31, 1997 30,386,000 6.50-30.82 22.51 683,884,000
(6,448,000 shares exerciseable)
Options granted 5,263,000 24.88-39.94 37.87 199,309,000
Options canceled (1,802,000) 6.50-35.06 23.45 (42,251,000)
Options exercised (3,519,000) 6.50-30.82 19.25 (67,729,000)
January 31, 1998 30,328,000 $ 7.19-39.94 $ 25.50 $ 773,213,000
(6,731,000 shares exerciseable)
The weighted average remaining life of options outstanding as of January 31, 1998 was 7.5 years.
Shares available for option grants:
January 31, 1997 43,590,000
January 31, 1998 40,129,000
Number of Weighted Average Weighted Average Options Weighted Average
Range of Exercise Prices Options Remaining Life (Years) Exercise Price Exerciseable Exercise Price
$ 7.19 to 10.66 1,593,000 1.8 $ 10.23 1,233,000 $ 10.13
13.25 to 17.69 898,000 2.9 14.44 550,000 14.46
20.00 to 24.88 17,998,000 8.0 23.29 3,000,000 23.32
25.00 to 29.75 4,513,000 5.4 27.25 1,887,000 27.62
30.82 to 39.94 5,326,000 9.8 37.89 61,000 30.82
30,328,000 6,731,000
Further information concerning the options is as follows:
The following table summarizes information about stock
options outstanding as of January 31, 1998.
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