Best Buy 2005 Annual Report Download - page 91

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$ in millions, except per share amounts
Option activity for the last three fiscal years was as follows:
Weighted Average
Exercise Price
Shares per Share
Outstanding on March 2, 2002 27,487,000 $30.29
Granted 14,253,000 44.06
Exercised (2,850,000) 14.01
Canceled (3,336,000) 43.65
Outstanding on March 1, 2003 35,554,000 35.89
Granted 3,799,000 58.50
Exercised (4,462,000) 25.55
Canceled (3,207,000) 41.72
Outstanding on February 28, 2004 31,684,000 39.45
Granted 3,853,000 55.00
Exercised (6,745,000) 32.67
Canceled (3,624,000) 46.44
Outstanding on February 26, 2005 25,168,000 $42.64
Exercisable options at the end of fiscal 2005, 2004 and 2003 were 14.8 million, 15.4 million and 13.4 million,
respectively. The following table summarizes information concerning options outstanding and exercisable as of
February 26, 2005:
Weighted
Average Weighted Weighted
Remaining Average Average
Range of Number Contractual Exercise Number Exercise
Exercise Prices Outstanding Life (Years) Price Exercisable Price
$ 0 to $10 1,002,000 2.15 $ 2.17 1,002,000 $ 2.17
$10 to $20 1,413,000 3.19 11.62 1,413,000 11.62
$20 to $30 2,557,000 7.84 28.47 1,302,000 28.46
$30 to $40 4,833,000 5.58 36.25 4,035,000 36.09
$40 to $50 3,749,000 5.32 46.58 3,639,000 46.61
$50 to $60 11,614,000 8.29 54.42 3,377,000 53.00
$ 0 to $60 25,168,000 6.75 $ 42.64 14,768,000 $ 37.23
Restricted Stock to shareholders of companies that comprise Standard &
Poor’s 500 Index (S&P 500) or upon the achievement of
Restricted stock vests based on continued employment with
Company or personal performance goals. Compensation
the Company (time-based) or upon achievement of
expense for time-based restricted stock is recognized on a
personal or Company performance goals (performance-
straight-line basis over the vesting period based on the
based). Outstanding time-based restricted stock vests over
fair value of the award on the grant date. Compensation
a period of at least three years, during which no more
expense for performance-based restricted stock is
than 25% may vest at the time of award, and no more
recognized each reporting period based on the number of
than 25% may vest on each anniversary date thereafter.
shares expected to ultimately vest, our stock price and the
Outstanding performance-based restricted stock vests at
vesting period. We use an outside valuation advisor to
the end of a three-year incentive period based on our
assist us in determining the number of shares expected to
total return to shareholders compared with the total return
75