Best Buy 2015 Annual Report Download - page 88

Table of Contents
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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 three
or 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 vest
at the end of a three-year incentive period based upon our total shareholder return ("TSR") compared to the TSR of companies
that comprise Standard & Poor's 500 Index ("market-based"). We have time-based share awards that vest in their entirety at the
end of three- and four-year periods, 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, and time-based share awards to directors vest one year from the grant date.
During fiscal 2014, our Employee Stock Purchase Plan was amended. The Plan permits employees to purchase our common
stock at a 5% discount from the market price at the end of semi-annual purchase periods and is non-compensatory. During
fiscal 2013 (11-month), the Plan permitted 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, and was considered
compensatory. Employees are required to hold the common stock purchased for 12 months. In fiscal 2015, 2014 and 2013 (11-
month), 0.3 million, 0.6 million and 1.0 million shares, respectively, were purchased through our employee stock purchase
plans. At January 31, 2015, and February 1, 2014, plan participants had accumulated $1 million and $2 million, respectively, to
purchase our common stock pursuant to these plans.
Stock-based compensation expense was as follows in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
12-Month 12-Month 11-Month
2015 2014 2013
Stock options $ 17 $ 25 $ 43
Share awards
Market-based 10 9 2
Time-based 60 62 62
Employee stock purchase plans — 1 5
Total $ 87 $ 97 $ 112
Stock Options
Stock option activity was as follows in fiscal 2015:
Stock
Options
Weighted-
Average
Exercise Price
per Share
Weighted-Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic Value
(in millions)
Outstanding at February 1, 2014 22,101,000 $ 36.38
Granted 1,524,000 $ 29.90
Exercised (1,679,000) $ 25.31
Forfeited/Canceled (4,604,000) $ 36.62
Outstanding at January 31, 2015 17,342,000 $ 36.81 4.9 $ 67
Vested or expected to vest at January 31, 2015 17,095,000 $ 36.91 4.8 $ 66
Exercisable at January 31, 2015 13,995,000 $ 39.37 4.0 $ 36
The weighted-average grant-date fair value of stock options granted during fiscal 2015, 2014 and 2013 (11-month) was $9.09,
$7.77 and $5.11, 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 2015, 2014 and
2013 (11-month), was $13 million, $39 million and $0 million, respectively. At January 31, 2015, there was $19 million of
unrecognized compensation expense related to stock options that is expected to be recognized over a weighted-average period
of 1.2 years.