Home Depot 2008 Annual Report Download - page 51

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The Company maintains two Employee Stock Purchase Plans (“ESPPs”) (U.S. and non-U.S. plans). The plan for
U.S. associates is a tax-qualified plan under Section 423 of the Internal Revenue Code. The non-U.S. plan is not a
Section 423 plan. As of February 1, 2009, there were 15 million shares available under the plan for U.S associates and
21 million shares available under the non-U.S. plan. The purchase price of shares under the ESPPs is equal to 85% of the
stock’s fair market value on the last day of the purchase period. During fiscal 2008, there were 3 million shares purchased
under the ESPPs at an average price of $19.74. Under the outstanding ESPPs as of February 1, 2009, employees have
contributed $6 million to purchase shares at 85% of the stock’s fair market value on the last day (June 30, 2009) of the
purchase period. The Company recognized $11 million, $14 million and $17 million of stock-based compensation in fiscal
2008, 2007 and 2006, respectively, related to the ESPPs.
In total, the Company recorded stock-based compensation expense, including the expense of stock options, ESPPs,
restricted stock and deferred stock units, of $176 million, $207 million and $297 million, in fiscal 2008, 2007 and 2006,
respectively.
The following table summarizes stock options outstanding at February 1, 2009, February 3, 2008 and January 28, 2007,
and changes during the fiscal years ended on these dates (shares in thousands):
Number of
Shares
Weighted
Average Exercise
Price
Outstanding at January 29, 2006 84,032 $37.24
Granted 257 39.53
Exercised (10,045) 28.69
Canceled (8,103) 40.12
Outstanding at January 28, 2007 66,141 $38.20
Granted 2,926 37.80
Exercised (6,859) 28.50
Canceled (9,843) 40.68
Outstanding at February 3, 2008 52,365 $38.98
Granted 5,226 26.09
Exercised (777) 22.55
Canceled (4,800) 39.14
Outstanding at February 1, 2009 52,014 $37.91
The total intrinsic value of stock options exercised was $4 million, $63 million and $120 million in fiscal 2008, 2007 and
2006, respectively. As of February 1, 2009, there were approximately 52 million stock options outstanding with a
weighted average remaining life of 4 years and an intrinsic value of $1.4 million. As of February 1, 2009, there were
approximately 42 million options exercisable with a weighted average exercise price of $39.33, a weighted average
remaining life of 4 years, and no intrinsic value. As of February 1, 2009, there were approximately 51 million shares
vested or expected to ultimately vest. As of February 1, 2009, there was $47 million of unamortized stock-based
compensation expense related to stock options which is expected to be recognized over a weighted average period of
3 years.
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