N O T E 1 0 - S
t o c k O p t i o n s a n d R e s t r i c t e d S t o
c k
The Company has a plan under which stock options may
be granted to officers and key employees for the purchase of a maximum of
3,000,000 shares of common stock. Under the terms of the plan, options may
be either incentive or non-qualified. The options have a term of ten years.
The exercise price per share, determined by a committee of the Board of
Directors, may not be less than the fair market value on the grant date.
The options are exercisable over periods determined when granted.
The Company applies APB Opinion No. 25 "Accounting for Stock Issued to Employees"
and related interpretations in accounting for its stock option plan. Accordingly,
no compensation cost has been recognized in the Company's financial statements.
Had compensation cost for the Company's stock option plan been determined
based on the fair value of such awards at the grant dates, consistent with
the methods of Financial Accounting Standards Board Statement No. 123 "Accounting
for Stock-Based Compensation," the Company's total and per share net income
would have been reduced as follows:
| |
|
|
|
|
|
|
|
| (Dollars in thousands, except per share amounts)
|
|
2000
|
1999
|
1998
|
 |
| Net income (loss) |
As reported |
$
|
(29,175)
|
$
|
70,901
|
$
|
59,583
|
| |
Pro forma |
|
(29,351)
|
|
67,852
|
|
57,364
|
| Basic earnings per share |
As reported |
$
|
(1.06)
|
$
|
2.53
|
$
|
2.10
|
| |
Pro forma |
|
(1.07)
|
|
2.42
|
|
2.02
|
| Diluted earnings per share |
As reported |
$
|
(1.06)
|
$
|
2.52
|
$
|
2.08
|
| |
Pro forma |
|
(1.07)
|
|
2.41
|
|
2.00
|
| |
|
|
|
|
|
|
|
The weighted average fair values of options granted
in fiscal years 2000, 1999 and 1998 were estimated at $3.05, $7.82, and
$9.75 per share, respectively, using the Black-Scholes option-pricing model
based on the following assumptions:
| |
|
|
|
| |
2000
|
1999
|
1998
|
|
| Risk-free interest rate |
5.8%
|
5.5%
|
4.7% & 5.4%
|
| Dividend yield |
4.6%
|
2.8%
|
2.0%
|
| Expected life |
5 years
|
5 years
|
5 years
|
| Expected volatility |
30.9%
|
29.5%
|
29.8%
|
| |
|
|
|
The following summarizes stock option activity during fiscal years
2000, 1999, and 1998:
| |
|
|
|
|
|
|
| |
2000
|
1999
|
1998
|
| |
Shares
|
Weighted
Average
Exercise Price
|
Shares
|
Weighted
Average
Exercise Price
|
Shares
|
Weighted
Average
Exercise Price
|
| |
| Outstanding, beginning of year |
1,564,890
|
$ 30.424
|
1,757,340
|
$ 30.385
|
924,420
|
$ 26.836
|
| Granted |
912,870
|
13.157
|
18,000
|
29.049
|
979,500
|
33.217
|
| Exercised |
-
|
-
|
(40,950)
|
20.125
|
(54,180)
|
22.069
|
| Canceled |
(340,668)
|
29.862
|
(169,500)
|
32.363
|
(92,400)
|
31.478
|
|
| Outstanding, end of year |
2,137,092
|
23.070
|
1,564,890
|
30.424
|
1,757,340
|
30.385
|
|
Following is a summary of the status of stock options
outstanding at December 31, 2000:
| |
|
|
|
|
| |
Number
Outstanding
|
Number
Exercisable
|
Exercise
Price
|
Remaining
Term |
|
| |
282,890
|
282,890
|
$ 20.125
|
5 years |
| |
136,000
|
132,800
|
32.375
|
6 years |
| |
140,200
|
128,000
|
35.313
|
7 years |
| |
489,700
|
196,000
|
34.125
|
8 years |
| |
178,932
|
154,698
|
30.250
|
8 years |
| |
13,000
|
8,000
|
29.118
|
9 years |
| |
160,000
|
-
|
15.438
|
10 years |
| |
736,370
|
-
|
12.625
|
10 years |
On November 1, 2000, the Company awarded 168,839 restricted
shares of common stock to its chief executive officer. The market value
of the shares awarded was $2,079. This amount was recorded as unearned compensation-restricted
stock and is shown as a reduction of shareholders' equity. Unearned compensation
is being amortized to expense over vesting periods of three, four and five
years. Fiscal 2000 amortized expense amounted to $98.
|
