Best Buy 2012 Annual Report Download - page 96

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$ in millions, except per share amounts or as otherwise noted
96
Upon adoption and approval of the Omnibus Plan, all of our previous equity incentive compensation plans were terminated.
However, existing awards under those plans continued 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 specified goals or upon continued employment. Outstanding share awards that are not time-based typically vest at
the end of a three-year incentive period based either upon our total shareholder return ("TSR") compared to the TSR of
companies that comprise Standard & Poor's 500 Index or growth in our common stock price ("market-based"), or upon the
achievement of company or personal performance goals ("performance-based"). We have time-based share awards that vest in
their entirety at the end of three- and four-year periods and time-based share awards where 25% of the award vests on the date
of grant and 25% vests on each of the three anniversary dates thereafter.
Our 2003 Employee Stock Purchase Plan permitted and our 2008 Employee Stock Purchase Plan permits our employees to
purchase our common stock at a 15% discount from the market price of the stock at the beginning or at the end of a semi-
annual purchase period, whichever is less.
Stock-based compensation expense was as follows in fiscal 2012, 2011 and 2010:
2012 2011 2010
Stock options $ 76 $ 90 $ 85
Share awards
Market-based — 4 8
Performance-based — (1) 1
Time-based 33 16 10
Employee stock purchase plans 11 12 14
Total $ 120 $ 121 $ 118
Stock Options
Stock option activity was as follows in fiscal 2012:
Stock
Options
Weighted-
Average
Exercise Price
per Share
Weighted-Average
Remaining
Contractual
Term (in years) Aggregate
Intrinsic Value
Outstanding at February 26, 2011 35,587,000 $ 38.97
Granted 3,973,000 27.50
Exercised (1,126,000) 24.61
Forfeited/Canceled (2,633,000) 39.87
Outstanding at March 3, 2012 35,801,000 $ 38.08 5.9 $ 4
Vested or expected to vest at March 3, 2012 34,099,000 $ 38.36 5.8 $ 4
Exercisable at March 3, 2012 24,403,000 $ 40.21 4.8 $ 4
The weighted-average grant-date fair value of stock options granted during fiscal 2012, 2011 and 2010 was $7.94, $11.97 and
$12.69, respectively, per share. The aggregate intrinsic value of our stock options (the amount by which the market price of the
stock on the date of exercise exceeded the exercise price of the option) exercised during fiscal 2012, 2011 and 2010, was $6,
$52 and $28, respectively. At March 3, 2012, there was $83 of unrecognized compensation expense related to stock options that
is expected to be recognized over a weighted-average period of 1.3 years.
Net cash proceeds from the exercise of stock options were $27, $134 and $96 in fiscal 2012, 2011 and 2010, respectively.
The actual income tax benefit realized from stock option exercises was $2, $19 and $10, in fiscal 2012, 2011 and 2010,
respectively.