EXPERIENCEBUSINESS - Harley-Davidson

HARLEY- DAVIDSON, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
9. CAPITAL STOCK (CONTINUED)
The Company has a nonvested stock plan under which
plan participants are entitled to cash dividends and voting
rights on their respective shares. Restrictions generally limit
the sale or transfer of shares during a restricted period, not
exceeding ten years. Participants may vest in certain amounts
of the nonvested stock upon death, disability or retirement as
described in the plan.
Unearned compensation was charged for the market
value of the nonvested shares on the date of grant and is being
amortized over the restricted period or reversed upon cancellation.
The unamortized unearned compensation value is
shown as a reduction of shareholders’ equity in the accompanying
consolidated balance sheets.
Information with respect to the nonvested shares of stock
outstanding and the market value of those shares on the date
of grant, is as follows:
2000 1999 1998
Outstanding at beginning of year
at $6.74 to $8.77 per share 240,000 305,600 305,600
Nonvested shares cancelled
at $8.77 per share — (65,600) —
Nonvested shares vested
at $6.74 per share (80,000) — —
Total shares outstanding at end of
year at $6.74 to $8.77 per share 160,000 240,000 305,600
Income (expense) recognized in 2000, 1999 and 1998 in
connection with this nonvested stock plan was $(.1) million,
$.1 million and $(.3) million, respectively.
The Company has a Stock Option Plan under which the
Board of Directors may grant to employees nonqualified
stock options with or without appreciation rights. The
options have an exercise price equal to the fair market value
of the underlying stock at the date of grant and vest ratably
over a four year period with the first 25 percent becoming
exercisable one year after the date of grant. The options expire
ten years from the date of grant. The number of shares of
common stock available for future grants under such plans
were 6.8 million and 8.2 million at December 31, 2000 and
1999, respectively.
58