Target 2010 Annual Report Download - page 76

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Of the shares reacquired, a portion was delivered upon settlement of prepaid forward contracts as follows:
Settlement of Prepaid Forward Contracts (a) Total Cash Aggregate
(millions) Investment Market Value (b)
2008 $249 $251
2009 56 60
2010 56 61
Total $361 $372
(a) 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.
(b) At their respective settlement dates.
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 (the 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 units, restricted stock units, restricted stock awards or
a combination of awards (collectively, share-based awards). The number of unissued common shares reserved for
future grants under the Plan was 17,552,454 at January 29, 2011 and 21,450,009 at January 30, 2010.
Total share-based compensation expense recognized in the Consolidated Statements of Operations was
$109 million, $103 million and $72 million in 2010, 2009 and 2008, respectively. The related income tax benefit was
$43 million, $40 million and $28 million in 2010, 2009 and 2008, respectively.
Stock Options
We grant nonqualified stock options to certain team members under the Plan that generally vest and become
exercisable annually in equal amounts over a four-year period and expire 10 years after the grant date. We also
grant options to the non-employee members of our Board of Directors which vest immediately and become
exercisable after one year with a term equal to the lesser of 10 years from date of grant or 5 years following
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