Transactions in stock options and deferred stock units under the 2002 Equity Plan and the Prior Plan are summarized as follows: Deferred Stock Units Stock Options Number of Stock Price at Number of Shares Date of Issuance Option Shares Option Price Outstanding at December 31, 2000 906,734 Granted 262,500 $ 9.10–$ 9.25 Exercised (14,324) $ 6.94 Canceled (33,000) $ 8.82–$12.50 Expired (15,000) $10.75 Outstanding at December 31, 2001 1,106,910 Issued 4,604 $13.74–$16.30 Granted 20,000 $15.75 Exercised (264,710) $ 5.68–$12.48 Outstanding at December 31, 2002 862,200 Issued 12,503 $15.17–$25.56 Granted 396,500 $25.56–$27.60 Exercised (268,380) $ 8.81–$12.50 Canceled (6,000) $ 8.81–$12.50 Outstanding at December 31, 2003 17,107 $13.74–$25.56 984,320 $ 5.68–$27.60 Exercisable at December 31, 2003 336,520 $ 5.68–$15.75 The number of shares available for granting awards under the 2002 Equity Plan was 493,059 and 896,062 at December 31, 2003 and 2002, respectively. The number of shares available for awards under the Prior Plan was 70,666 at December 31, 2001. The following table summarizes information about stock options outstanding at December 31, 2003: Option Shares Option Remaining Shares Exercise Price Outstanding Life (Years) Exercisable $ 5.68 15,000 2.0 15,000 $ 8.81 159,000 1.9 94,600 $ 9.10 204,820 3.9 56,920 $ 9.20 15,000 2.0 15,000 $ 9.25 15,000 3.0 15,000 $ 9.31 150,000 1.9 120,000 $11.63 9,000 1.3 2,400 $15.75 20,000 5.0 20,000 $25.56 371,500 5.9 — $27.60 25,000 6.0 — Outstanding stock options expire in five to six years from the date they are granted; options vest over service periods that range from one to five years. The following reconciliation details the denominator used in the computation of basic and diluted earnings per share: Weighted Average Common Shares Outstanding 2003 ANNUAL REPORT 33 DREW INDUSTRIES INCORPORATED Year Ended December 31, 2003 2002 2001 Weighted average shares outstanding for basic earnings per share 10,075,406 9,789,513 9,660,501 Common stock equivalents pertaining to: Stock options 221,502 219,114 5,368 Total for diluted shares 10,296,908 10,008,627 9,665,869