RITE AID CORP | 2013 | FY | 3


 

 

 
  Shares   Weighted
Average
Grant Date
Fair Value
 

Balance at February 27, 2010

    5,944     2.26  

Granted

    4,574     1.07  

Vested

    (3,055 )   3.21  

Cancelled

    (385 )   1.65  
           

Balance at February 26, 2011

    7,078     1.12  

Granted

    8,525     1.23  

Vested

    (3,366 )   1.11  

Cancelled

    (731 )   1.16  
           

Balance at March 3, 2012

    11,506   $ 1.20  
           

Granted

    5,450     1.31  

Vested

    (3,917 )   1.18  

Cancelled

    (362 )   1.26  
           

Balance at March 2, 2013

    12,677   $ 1.25  
           

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  Shares   Weighted
Average
Exercise
Price
Per Share
  Weighted
Average
Remaining
Contractual
Term
  Aggregate
Intrinsic
Value
 

Outstanding at February 27, 2010

    76,114     3.08              

Granted

    17,443     1.07              

Exercised

    (244 )   0.92              

Cancelled

    (19,015 )   3.66              
                       

Outstanding at February 26, 2011

    74,298     2.47              
                       

Granted

    23,200     1.19              

Exercised

    (896 )   1.02              

Cancelled

    (22,804 )   4.31              
                       

Outstanding at March 3, 2012

    73,798   $ 1.52              
                       

Granted

    12,020     1.32              

Exercised

    (1,535 )   1.06              

Cancelled

    (3,283 )   2.08              
                       

Outstanding at March 2, 2013

    81,000   $ 1.48     6.79   $ 38,963  
                   

Vested or expected to vest at March 2, 2013

    72,742   $ 1.51     6.66   $ 35,262  
                   

Exercisable at March 2, 2013

    42,893   $ 1.71     5.75   $ 21,534  
                   

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  2013   2012   2011  

Expected stock price volatility(1)

    85 %   79 %   79 %

Expected dividend yield(2)

    0.00 %   0.00 %   0.00 %

Risk-free interest rate(3)

    0.71 %   1.45 %   1.92 %

Expected option life(4)

    5.5 years     5.5 years     5.5 years  

(1)
The expected volatility is based on the historical volatility of the stock price over the most recent period equal to expected life of the option.

(2)
The dividend rate that will be paid out on the underlying shares during the expected term of the options. The Company does not currently pay dividends on its common stock, as such, the dividend rate is assumed to be zero percent.

(3)
The risk free interest rate is equal to the rate available on United States Treasury zero-coupon issues as of the grant date of the option with a remaining term equal to the expected term.

(4)
The period of time for which the option is expected to be outstanding. The Company analyzed historical exercise behavior.

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