Notes to Consolidated Financial Statements
|
| December 31, 2001, 2000 and 1999 |
| A summary of stock option activity for the years ended December 31, 2001, 2000 and 1999 is as follows: |
|
 |
|
|
Weighted Average |
|
|
Shares |
Exercise Price |
|
| Outstanding at December 31, 1998 |
921,623 |
$23.57 |
|
|
Granted |
369,728 |
27.18 |
|
|
Forfeited |
(22,450) |
31.20 |
|
|
Exercised |
(45,756) |
11.98 |
|
|
| Outstanding at December 31, 1999 |
1,223,145 |
24.95 |
|
|
Granted |
790,621 |
17.06 |
|
|
Forfeited |
(46,853) |
26.26 |
|
|
Exercised |
(90,420) |
4.76 |
|
|
| Outstanding at December 31, 2000 |
1,876,493 |
22.57 |
|
|
Granted |
114,323 |
10.00 |
|
|
Forfeited |
(196,575) |
21.39 |
|
|
Exercised |
-- |
-- |
|
|
| Outstanding at December 31, 2001 |
1,794,241 |
$21.89 |
|
|
| Options exercisable at: |
|
|
December 31, 2001 |
989,897 |
$22.22 |
|
|
December 31, 2000 |
833,579 |
20.96 |
|
|
December 31, 1999 |
566,867 |
19.55 |
|
|
Summary information about the Company's stock options outstanding at December 31, 2001 is as follows:
|
| Range of |
Outstanding at |
Weighted Average |
Weighted Average |
Exercisable at |
Weighted Average |
| Exercise Price |
December 31, 2001 |
Remaining Life |
Exercise Price |
December 31, 2001 |
Exercise Price |
|
|
|
(In Years) |
|
| $ 7.34 |
–$16.88 |
368,646 |
7.5 |
$10.88 |
248,401 |
$11.13 |
| 17.75 |
–23.75 |
739,835 |
6.3 |
19.54 |
317,711 |
19.52 |
| 24.44 |
–29.75 |
249,299 |
6.8 |
25.83 |
114,420 |
25.88 |
| 30.13 |
–40.80 |
436,461 |
5.3 |
32.94 |
309,365 |
32.53 |
|
| $ 7.34 |
–$40.80 |
1,794,241 |
6.4 |
$21.89 |
989,897 |
$22.22 |
|
| As permitted by SFAS No. 123, "Accounting for Stock-Based Compensation," the Company accounts for the director equity plan and the incentive stock option and bonus plans under APB Opinion No. 25; however, the Company has computed for pro forma disclosure purposes the value of all options granted during 2001, 2000 and 1999 using the Black-Scholes option pricing model as prescribed by SFAS No. 123 using the following weighted average assumptions for grants in 2001, 2000 and 1999: |
|
|
2001 |
|
2000 |
|
1999 |
|
| Risk-free interest |
| rate |
|
4.92%–5.36% |
|
5.18%–6.84% |
|
5.09%–6.18% |
| Expected dividend |
|
|
|
|
|
|
| yield |
|
1.16%–1.63% |
|
4.01%–7.68% |
|
2.72%–2.92% |
| Expected option |
|
|
|
|
|
|
| lives |
8 - 10 years |
8 - 10 years |
8 - 10 years |
| Expected volatility |
|
41% |
|
40% |
|
30% |
| The total values of the options granted during the years ended December 31, 2001, 2000 and 1999 were computed to be approximately $470,000, $3,681,000 and $2,600,000, respectively, which would be amortized over the vesting period of the options. If the Company had accounted for these plans in accordance with SFAS No. 123, the Company's reported and pro forma net (loss) income and net (loss) income per share for the years ended December 31, 2001, 2000 and 1999 would have been as follows (in thousands, except per share data): |
|
|
2001 |
2000 |
1999 |
|
| Net (loss) income: |
|
As reported |
$(14,602) |
$8,175 |
$40,947 |
|
Pro forma |
(15,756) |
6,628 |
39,853 |
| Diluted (loss) income |
|
per common share: |
|
As reported |
$ (0.52) |
$ 0.31 |
$ 1.62 |
|
Pro forma |
(0.57) |
0.25 |
1.58 |
|
| Deferred Compensation Plans |
| The Parent Company and certain of its subsidiaries have deferred compensation plans for several of their present and former officers and key employees. These plans provide for retirement, involuntary termination, and death benefits. The involuntary termination and retirement benefits are accrued over the period of active employment from the execution dates of the plans to the normal retirement dates (age 65) of the employees covered. Deferred compensation expense applicable to the plans was approximately $226,000, $227,000 and $292,000 for the years ended December 31, 2001, 2000 and 1999, respectively. Accruals of approximately $1,687,000 and $2,096,000 related to these plans are included in deferred compensation in the accompanying balance sheets at December 31, 2001 and 2000, respectively. |
8. Pension Plan and Other Postretirement Benefits
|
Pension Plan and Supplemental
Executive Retirement Plan |
| Substantially all of the Company's employees participate in a noncontributory defined benefit pension plan (the "Pension Plan"). The Pension Plan calls for benefits to be paid to all eligible employees at retirement based primarily on years of service with the Company and compensation rates in effect near retirement. The Pension Plan's assets consist of shares held in collective investment funds and group annuity contracts. The Company's policy is to fund benefits attributed to employees' service to date as well as service expected to be earned in the future. Contributions to the Pension Plan totaled approximately $8,313,000, $5,116,000 and $5,526,000 in 2001, 2000 and 1999, respectively. |
|
|
33
|
|
|
|
Caraustar Industries, Inc.
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