The Gap 2013 Annual Report Download - page 85

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61
The fair value of stock options issued during fiscal 2013, 2012, and 2011 was estimated on the date of grant using
the following assumptions:
Fiscal Year
2013 2012 2011
Expected term (in years) 4.5 4.6 4.9
Expected volatility 31.5% 33.6% 30.6%
Dividend yield 1.7% 2.1% 2.1%
Risk-free interest rate 0.7% 1.0% 2.3%
A summary of stock option activity under the 2011 Plan and the 2002 Plan for fiscal 2013 is as follows:
Shares
Weighted-
Average
Exercise Price
Balance as of February 2, 2013 12,800,355 $ 20.56
Granted 1,498,050 $ 36.54
Exercised (6,151,766) $ 18.75
Forfeited/Expired (746,817) $ 24.77
Balance as of February 1, 2014 7,399,822 $ 24.89
A summary of additional information about stock options is as follows:
Fiscal Year
2013 2012 2011
Weighted-average fair value per share of stock options granted $ 8.25 $ 6.35 $ 5.28
Aggregate intrinsic value of stock options exercised (in millions) $ 125 $ 94 $ 19
Fair value of stock options vested (in millions) $ 14 $ 15 $ 15
Information about stock options outstanding, vested or expected to vest, and exercisable as of February 1, 2014
is as follows:
Options Outstanding Options Exercisable
Range of Exercise Prices
Number of
Shares as of
February 1, 2014
Weighted-
Average
Remaining
Contractual
Life (in years)
Weighted-
Average
Exercise Price
Number of
Shares as of
February 1, 2014
Weighted-
Average
Exercise Price
$11.77-$18.91 1,501,474 3.66 $ 17.35 1,490,849 $ 17.36
$19.00-$21.63 695,652 1.85 $ 20.80 672,152 $ 20.85
$21.79 1,481,784 7.10 $ 21.79 474,487 $ 21.79
$21.88-$25.09 1,970,612 7.14 $ 24.37 443,425 $ 23.48
$27.43-$43.31 1,750,300 9.04 $ 36.17 89,800 $ 34.97
7,399,822 6.38 $ 24.89 3,170,713 $ 20.12
Vested or expected to vest as
of February 1, 2014 6,698,572 6.19 $ 24.46
The aggregate intrinsic value of options outstanding, options vested or expected to vest, and options exercisable
as of February 1, 2014 was $98 million, $91 million, and $57 million, respectively. Stock options exercisable as of
February 1, 2014 had a weighted-average remaining contractual life of 2.02 years.