Sears 2008 Annual Report Download - page 78

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
We have granted restricted stock awards to certain associates. These restricted stock awards typically vest in
full three years from the date of grant, provided the grantee remains employed by us as of the vesting date. The
fair value of these awards is equal to the market price of our common stock on the date of grant. We do not
currently have a program that provides for restricted stock awards on an annual basis. Changes in restricted stock
awards for fiscal 2008, fiscal 2007, and fiscal 2006 were as follows:
2008 2007 2006
(Shares in thousands) Shares
Weighted-
Average
Fair Value
on Date
of Grant Shares
Weighted-
Average
Fair Value
on Date
of Grant Shares
Weighted-
Average
Fair Value
on Date
of Grant
Beginning of year balance ...................... 593 $155.05 273 $133.79 242 $112.48
Granted .................................... 184 84.63 549 159.69 209 149.11
Vested ..................................... (16) 111.59 (94) 105.15 (132) 119.05
Forfeited .................................... (167) 155.40 (135) 165.60 (46) 136.37
End of year balance ....................... 594 $134.32 593 $155.05 273 $133.79
millions 2008 2007 2006
Aggregate fair value of shares granted based on weighted average fair value at
date of grant .................................................... $16 $88 $31
Aggregate fair value of shares vesting during period ...................... 1 13 20
Aggregate fair value of shares forfeited during period ..................... 13 16 7
Common Share Repurchase Program
From time to time we repurchase shares of our common stock under a common share repurchase program
authorized by our Board of Directors. The common share repurchase program was initially announced in 2005
with a total authorization by our Board of Directors of up to $1.0 billion. Since the original authorization in 2005,
our Board of Directors authorized the repurchase of up to an additional $4.5 billion of common stock, including
an additional $1.0 billion authorization in fiscal 2008, for a total authorization since inception of the program of
$5.5 billion. During fiscal 2008, we repurchased approximately 10.3 million of our common shares at a total cost
of approximately $678 million, or an average price of $65.58 per share. During fiscal 2007, we repurchased
approximately 21.7 million of our common shares at a total cost of approximately $2.9 billion, or an average
price of $134.65 per share. During fiscal 2006, we repurchased approximately 6 million of our common shares at
a total cost of approximately $806 million, or an average price of $132.94 per share. As of January 31, 2009, we
had approximately $505 million of remaining authorization under this program.
The share repurchase program has no stated expiration date and share repurchases may be implemented
using a variety of methods, which may include open market purchases, privately negotiated transactions, block
trades, accelerated share repurchase transactions, the purchase of call options, the sale of put options or
otherwise, or by any combination of such methods.
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