Target 2008 Annual Report Download - page 63

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Share repurchases for the last three years, repurchased primarily through open market transactions,
were as follows:
Share Repurchases Total Number of Average Price
(millions, except per share data) Shares Purchased Paid per Share Total Investment
2006 19.5 $50.16 $ 977
2007 – Under the prior program 19.7 60.72 1,197
2007 – Under the 2007 program 26.5 54.64 1,445
2008 67.2 50.49 3,395
Total 132.9 $52.79 $7,014
Of the shares reacquired and included above, a portion was delivered upon settlement of prepaid forward
contracts. The prepaid forward contracts settled in 2008 had a total cash investment of $249 million and an
aggregate market value of $251 million at their respective settlement dates. The prepaid forward contracts
settled in 2007 had a total cash investment of $165 million and an aggregate market value of $215 million at
their respective settlement dates. The prepaid forward contracts settled in 2006 had a total cash investment of
$76 million and an aggregate market value of $88 million at their respective settlement dates. These contracts
are among the investment vehicles used to reduce our economic exposure related to our nonqualified
deferred compensation plans. The details of our positions in prepaid forward contracts have been provided in
Note 26.
Our share repurchases during 2008 included 30 million shares that were acquired through the exercise of
call options.
Call Option Repurchase Details Number of (amounts per share)
Options Exercise Total Cost
Series Exercised Date Premium(a) Strike Price Total (millions)
Series I 10,000,000 April 2008 $11.04 $40.32 $ 51.36 $ 514
Series II 10,000,000 May 2008 10.87 39.31 50.18 502
Series III 10,000,000 June 2008 11.20 39.40 50.60 506
Total 30,000,000 $11.04 $39.68 $ 50.71 $ 1,522
(a) Paid in January 2008.
25. Share-Based Compensation
We maintain a long-term incentive plan for key team members and non-employee members of our Board
of Directors. Our long-term incentive plan allows us to grant equity-based compensation awards, including
stock options, stock appreciation rights, performance share unit awards, restricted stock unit awards, or a
combination of awards. A majority of granted awards are nonqualified stock options that vest annually in equal
amounts over a four-year period and expire no later than 10 years after the grant date. Options granted to the
non-employee members of our Board of Directors become exercisable after one year and have a 10-year
term. We have issued performance share unit awards annually since January 2003. These awards represent
shares potentially issuable in the future based upon the attainment of compound annual growth rates in
revenue and EPS as set forth in the performance criteria. In 2006 and 2008, we issued restricted stock units
with three-year cliff vesting to select team members. We also regularly issue restricted stock units to our Board
of Directors. Restricted stock units granted in 2008 have one-year graded vesting. The number of unissued
43
PART II