Banana Republic 2006 Annual Report Download - page 74

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The aggregate intrinsic value of options outstanding and options exercisable at February 3, 2007 was
$94 million and $68 million, respectively. Options exercisable at February 3, 2007 had a weighted-average
remaining contractual life of 5.42 years.
The following table summarizes unvested Service Award and Performance Equity Award activity:
Shares
Weighted-Average
Grant-Date
Fair Value Price
Balance at January 28, 2006 ........................................... 2,106,686 $21.65
Granted ........................................................... 4,219,239 18.37
Vested ............................................................ (517,633) 21.39
Forfeited ........................................................... (891,519) 19.61
Balance at February 3, 2007 ........................................... 4,916,773 19.23
The aggregate intrinsic value of unvested Service Awards and Performance Equity Awards at February 3,
2007 was $95 million. Service Awards and Performance Equity Awards at February 3, 2007 had a weighted-
average remaining contractual life of 3 years.
NOTE 9. EMPLOYEE BENEFIT PLANS
We have a qualified defined contribution retirement plan, called GapShare, which is available to employees
who meet certain age and service requirements. This plan permits employees to make contributions up to the
maximum limits allowable under the Internal Revenue Code. Under the plan, we match in cash all or a portion of
employees’ contributions under a predetermined formula. Our contributions vest immediately. Our contributions
to GapShare in fiscal 2006, 2005, and 2004 were approximately $35 million, $33 million, and $31 million,
respectively.
A nonqualified Executive Deferred Compensation Plan (the “Plan”) was established on January 1, 1999, and
allows eligible employees to defer compensation up to a maximum amount. We do not match any employees’
contributions under this Plan. As of February 3, 2007 and January 28, 2006, the asset and liability relating to the
Plan was approximately $22 million and $22 million, and $24 million and $30 million, respectively. The asset is
classified in other assets and the liability is classified in lease incentives and other liabilities in the Consolidated
Balance Sheets. This Plan was frozen for additional contributions effective December 31, 2005.
A nonqualified Supplemental Deferred Compensation Plan established on January 1, 2006, replaced the
Plan and allows eligible employees and non-employee members of the Board of Directors to defer compensation
up to a maximum amount. As of February 3, 2007 and January 28, 2006, the asset and liability relating to this
Plan was not material. We match in cash all or a portion of employees’ contributions under a predetermined
formula. Our contributions to this Plan in fiscal 2006 were $0.3 million. We do not match non-employee
members of the Board of Directors contributions under the plan.
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