Sears 2009 Annual Report Download - page 82

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
We do not currently have an employee stock option plan and as of January 30, 2010, there are no
outstanding options. Changes in employee stock options for fiscal 2009, fiscal 2008, and fiscal 2007 were as
follows:
2009 2008 2007
(Shares in thousands) Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price
Beginning of year balance ...................... 350 $112.90 350 $112.90 350 $112.90
Granted ..................................... — — — — — —
Exercised .................................... (150) 88.62 — — — —
Cancelled/Forfeited ............................ (200) 131.11 — — — —
End of year balance ........................ — $ — 350 $112.90 350 $112.90
Exercisable .................................. 350 $112.90 350 $112.90
Fair value of options granted during the year ........ $ — $ —
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 2009, fiscal 2008, and fiscal 2007 were as follows:
2009 2008 2007
(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 ..................... 594 $134.32 593 $155.05 273 $133.79
Granted ................................... 110 54.90 184 84.63 549 159.69
Vested .................................... (86) 134.67 (16) 111.59 (94) 105.15
Forfeited .................................. (339) 152.59 (167) 155.40 (135) 165.60
End of year balance ...................... 279 $ 80.73 594 $134.32 593 $155.05
millions 2009 2008 2007
Aggregate fair value of shares granted based on weighted average fair value at
date of grant .................................................... $ 6 $16 $88
Aggregate fair value of shares vesting during period ...................... 5 1 13
Aggregate fair value of shares forfeited during period ..................... 14 13 16
Approximately 114,000 shares of the 279,000 shares of restricted stock outstanding at January 30, 2010 are
expected to vest during the fiscal year 2010.
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,
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