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This excerpt taken from the HBI 10-Q filed Nov 13, 2006. Stock
Options
The exercise price of each stock option equals the market price
of Hanesbrands’ stock on the date of grant. Options can
generally be exercised over a term of between five and seven
years. Options vest ratably over two to three years with the
exception of one category of award which vested immediately upon
grant. The fair value of each option grant is estimated on the
date of grant using the Black-Scholes option-pricing model using
the following weighted average assumptions: weighted average
expected volatility of 30%; weighted average expected term of
3.7 years; expected dividend yield of 0%; and risk-free
interest rate ranging from 4.52% to 4.59%, with a weighted
average of 4.55%.
Table of Contents
HANESBRANDS
Notes to
Condensed Combined and Consolidated Financial
Statements — (Continued)
(unaudited)
(dollars and shares in thousands, except per share data)
The Company uses the volatility of peer companies for a period
of time that is comparable to the expected life of the option to
determine volatility assumptions. The Company utilized the
simplified method outlined in SEC Staff Accounting
Bulletin No. 107 to estimate expected lives for
options granted during the period.
A summary of the changes in stock options outstanding to the
Company’s employees under the Hanesbrands OIP during the
quarter ended September 30, 2006 is presented below:
There were 1,123 options that vested during the quarter ended
September 30, 2006. As of September 30, 2006, the
Company had unrecognized compensation expense related to stock
option awards of $13,320. The weighted average fair value of
individual options granted during the quarter ended
September 30, 2006 was $6.55.
This excerpt taken from the HBI 8-K filed Sep 5, 2006. Stock Options The exercise price of each stock option equals or exceeds the market price of Sara Lee’s stock on the date of grant. Options can generally be exercised over a maximum term of 10 years. Options generally vest ratably over three years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model using the weighted average assumptions as outlined in the following table.
The Company uses historical volatility for a period of time that is comparable to the expected life of the option to determine volatility assumptions. The Company has discontinued the granting of replacement options after the start of fiscal 2006. As a result of this change, the Company utilizes the simplified method outlined in SEC Staff Accounting Bulletin No. 107 to estimate expected lives for options granted during the period.
F-49
Table of ContentsHANESBRANDS Notes to Unaudited Interim Condensed Combined and Consolidated Financial Statements—(Continued) (dollars in thousands, except per share data)
A summary of the changes in stock options outstanding under Sara Lee’s option plans during the thirty-nine weeks ended April 1, 2006 is presented below:
The weighted average grant date fair value of options granted during the thirty-nine weeks ended April 1, 2006 and fiscal 2005 were $3.99 and $3.39, respectively. The total intrinsic value of options exercised during the thirty-nine weeks ended April 1, 2006 and fiscal 2005 were $344 and $11,902, respectively. The fair value of options that vested during the thirty-nine weeks ended April 1, 2006 was $71,186. Sara Lee received cash from the exercise of stock options during the thirty-nine weeks ended April 1, 2006 of $1,426. As of April 1, 2006, the Company had $262 of total unrecognized compensation expense related to stock option plans that will be recognized in approximately six months. | EXCERPTS ON THIS PAGE:
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