Notes: 8
124
Ahold Annual Report 2003
Financial Statements
2001
Term
Outstanding
at beginning
of year
Granted
Exercised
Weighted
average exercise
price
Weighted
average share
price
Forfeited or
expired
Outstanding at
end of year
5 yr
13,406,552
6,180,759
2,827,667
19.12
33.59
195,084
16,564,560
10 yr
4,698,582
2,111,011
331,972
7.28
33.99
300,282
6,177,339
Total
18,105,134
8,291,770
3,159,639
17.88
33.63
495,366
22,741,899
Weighted average exercise price
25.08
34.23
17.88
31.90
29.00
The following table summarizes information about fixed stock options for all employees at December 28, 2003:
Number
Weighted
Number
Weighted
outstanding at
Weighted
average
exercisable at
Weighted
average
Range of exercise prices
December 28,
average exercise
remaining
December 28,
average exercise
remaining
EUR
2003
price
contractual life
2003
price
contractual life
5.20-11.65
9,940,810
10.78
6.01
605,648
8.04
1.31
15.18-22.17
963,837
18.86
3.38
963,837
18.86
3.38
25.38-29.39
4,055,552
29.23
1.97
3,309,322
29.26
1.05
30.26-42.96
17,436,682
32.82
3.19
3,173,761
30.43
0.06
32,396,881
8,052,568
Had compensation costs for the Plans been determined consistent with the fair value method, using the Black-
Scholes option pricing model and the assumptions summarized below, the Company's pro forma net income (loss)
and pro forma net income (loss) per share for 2003, 2002 and 2001, would have been as follows:
2003
2002
2001
Net income (loss) after preferred dividends
As reported
Stock-based compensation cost net of related tax effect
(39)
(25)
(1,246)
(42)
712
(44)
Pro forma
(64)
(1,288)
668
Income (loss) after preferred dividends per common share - basic:
As reported
Stock-based compensation cost net of related tax effect
(0.04)
(0.02)
(1.24)
(0.05)
0.77
(0.04)
Pro forma
(0.06)
(1.29)
0.73
Income (loss) after preferred dividends per common share - diluted:
As reported
Stock-based compensation cost net of related tax effect
(0.04)
(0.02)
(1.24)
(0.05)
0.76
(0.05)
Pro forma
(0.06)
(1.29)
0.71
Weighted average assumptions 2003 2002 2001
Expected life of the option (years)
Five-year Options 4.0 4.0 4.0
Ten-year Options 7.5 7.5 7.5
Interest rate 2.5% 4.0% 5.5%
Volatility 43.0% 31.0% 32.5%
Assumed forfeitures 6.8% 4.0% 5.0%
Dividend yield2.0%2.0%2.0%
The weighted average fair value of stock options granted during 2003, 2002 and 2001 was EUR 3.87, EUR 8.94
and EUR 10.55 per option, respectively.
