Best Buy 2007 Annual Report Download - page 91

$ in millions, except per share amounts
76
compared with carrying values of $650 and $596,
respectively.
At March 3, 2007, the future maturities of long-term debt,
including capitalized leases, consisted of the following:
Fiscal Year
2008 $ 19
2009 18
2010 27
2011 18
2012(1) 420
Thereafter 107
$609
(1) Holders of our debentures due in 2022 may require us to
purchase all or a portion of their debentures on January 15,
2012. The table above assumes that all holders of our
debentures exercise their redemption options.
6.Shareholders’Equity
Stock Compensation Plans
Our 2004 Omnibus Stock and Incentive Plan (“Omnibus
Plan”) authorizes us to grant or issue non-qualified stock
options (“stock options”), incentive stock options, share
awards and other equity awards up to a total of 24 million
shares. At March 3, 2007, we have not granted incentive
stock options. Under the terms of the Omnibus Plan,
awards may be granted to our employees, officers,
advisors, consultants and directors. Awards issued under the
Omnibus Plan vest as determined by the Compensation
and Human Resources Committee of our Board at the time
of grant. At March 3, 2007, a total of 7.9 million shares
were available for future grants under the Omnibus Plan.
Our Board amended the Omnibus Plan, subject to
shareholder approval at the Regular Meeting of
Shareholders scheduled for June 27, 2007, to increase the
number of shares subject to the plan to 38 million shares.
Upon adoption and approval of the Omnibus Plan, all of
our previous stock compensation plans were terminated.
However, existing awards under those plans will continue to
vest in accordance with the original vesting schedule and
will expire at the end of their original term.
Our outstanding stock options have a 10-year term.
Outstanding stock options issued to employees generally
vest over a four-year period, and outstanding stock options
issued to directors vest immediately upon grant. Share
awards vest based either upon attainment of established
goals or upon continued employment (“time-based”).
Outstanding share awards that are not time-based vest at
the end of a three-year incentive period based either upon
our total shareholder return (“TSR”) compared with the TSR
of companies that comprise the S&P 500 or growth in our
common stock price (“market-based”), or upon the
achievement of company or personal performance goals
(“performance-based”). Time-based share awards vest over
a period of at least three years, during which no more than
25% may vest at the time of the award, and no more than
25% may vest on each anniversary date thereafter. Stock-
based compensation expense associated with our time-
based share awards was not significant for any period
presented.
Our ESPP permits employees to purchase stock at 85% of
the market price of our common stock at the beginning or
at the end of the semi-annual purchase period, whichever is
less.
Stock Options
Stock option activity in fiscal 2007 was as follows:
Stock
Options
Weighted-
Average
Exercise Price
per Share
Weighted-
Average
Remaining
Contractual
Term (in years) Aggregate Intrinsic Value
Outstanding at February 25, 2006 32,334,000 $31.93
Granted 4,650,000 55.29
Exercised (6,004,000) 27.99
Forfeited/Canceled (2,547,000) 40.64
Outstanding at March 3, 2007 28,433,000 $35.81 6.25 $342
Exercisable at March 3, 2007 18,181,000 $28.87 4.79 $318