The following is a reconciliation of the weighted-average common shares outstanding for purposes of computing basic and  diluted net income per share (in thousands): Weighted-average common shares outstanding Year Ended December  31 , 2002 2003 2004 Basic weighted-average common shares outstanding 81 , 731 78 , 637 70 , 734 Effect of dilutive securities: Stock awards and options 1 , 397 904 1 , 893 Diluted weighted-average common shares outstanding 83 , 128 79 , 541 72 , 627 For the years ended December  31 ,  2002 ,  2003  and  2004 , other stock options totaling  2 . 7  million,  2 . 9  million and  0 . 6 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive. Repurchases of common stock Since August  1998 , the board of directors has authorized the Company to repurchase up to $ 90 . 0  million of the Company’s  outstanding shares of Class A common stock on the open market or in private transactions. The repurchases are used primar- ily for the Company’s equity incentive plans and strategic initiatives. During the years ended December  31 ,  2002 ,  2003  and  2004 , the Company repurchased approximately  1 . 2  million,  0 . 8  million and  0 . 1  million shares of Class A common stock for  an aggregate price of approximately $ 14 . 2  million, $ 8 . 4  million and $ 1 . 3  million, respectively, under these repurchase pro- grams. Between August  1998  and December  31 ,  2004 , the Company had repurchased a total of approximately  8 . 8  million  shares of Class A common stock under this repurchase program for an aggregate price of approximately $ 82 . 9  million. Additionally, in October  2003 , the Company repurchased approximately  10 . 8  million shares of Class A common stock  from certain members of the Company’s original stockholder group for approximately $ 141 . 6  million, which included $ 1 . 6 million of related expenses. These stockholders also sold approximately  6 . 2  million additional shares of Class A common  stock to third-party investors. The transaction also included the agreement among all participants in the transaction to  convert all of their remaining shares of super-voting Class B common stock to Class A common stock. The terms and condi- tions of the repurchase were approved by a special committee of the Company’s board of directors comprised solely of in- dependent directors. The special committee engaged its own financial and legal advisors in connection with the repurchase  transaction. The Company financed the repurchase with $ 45 . 0  million from existing cash balances, approximately $ 20 . 0 million from its revolving credit facility, which was repaid prior to December  31 ,  2003  and $ 75 . 0  million in new long-term  debt drawn under the $ 125 . 0  million shelf facility. On July  30 ,  2004 , the Company purchased approximately  3 . 1  million shares of common stock from members of its  original stockholder group for an aggregate purchase price of $ 71 . 0  million, or $ 22 . 62  per share. These stockholders also  sold  1 . 5  million shares to third-party investors. The Company purchased the shares pursuant to an option that was obtained  by the Company as part of a recapitalization transaction completed in October  2003 . The Company filed a registration  statement with respect to the shares sold to the third-party investors. Conversion of common stock During  2002  and  2003 , the holders of the Class B common stock converted approximately  3 . 5  million and  45 . 4  million  shares of Class B common stock to Class A common stock, respectively. The conversion of  45 . 4  million shares of Class B  common stock in  2003  was part of the repurchase transaction described above. As of December  31 ,  2004 , all outstanding  Class B common stock had been converted to Class A common stock.  11 . EQUITY INCENTIVE PLANS During the year ended December  31 ,  1996 , the Company’s board of directors adopted the Nu Skin Enterprises, Inc.,  1996 Stock Incentive Plan (the “ 1996  Stock Incentive Plan”). The  1996  Stock Incentive Plan provides for granting of stock awards  and options to purchase common stock to executives, other employees, independent consultants and directors of the Com- pany and its Subsidiaries. On February  7 ,  2003 , the board of directors authorized and the shareholders approved an amend- ment to the plan increasing the number of shares available for grant from  8 . 0  million to  13 . 0  million. As of December  31 ,  2004 , approximately  9 . 6  million shares or options have been granted.  In  2001  the Company offered to exchange certain outstanding options to purchase shares of Nu Skin’s Class A common  stock held by eligible option holders granted under the  1996  Stock Incentive Plan having an exercise price equal to or  greater than $ 10 . 00  per share for new options to purchase shares of Nu Skin’s Class A common stock. A total of  90  employ- 64