Banana Republic 2011 Annual Report Download - page 78

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A summary of additional information about stock options is as follows:
Fiscal Year
2011 2010 2009
Weighted-average fair value per share of stock options granted ......................... $5.28 $5.57 $4.86
Aggregate intrinsic value of stock options exercised (in millions) ........................ $19 $19 $14
Fair value of stock options vested (in millions) ......................................... $15 $15 $14
Information about stock options outstanding, vested or expected to vest, and exercisable as of January 28, 2012 is
as follows:
Options Outstanding Options Exercisable
Range of Exercise Prices
Number of
Shares as of
January 28, 2012
Weighted-
Average
Remaining
Contractual
Life (in years)
Weighted-
Average
Exercise Price
Number of
Shares as of
January 28, 2012
Weighted-
Average
Exercise Price
$10.50 - $13.93 ........................ 2,624,718 4.41 $12.19 1,631,280 $12.45
$14.03 - $16.90 ........................ 2,597,961 4.87 $16.27 1,712,961 $16.23
$17.01 - $19.99 ........................ 5,956,174 5.03 $18.88 4,453,376 $18.79
$20.01 - $21.88 ........................ 6,447,779 4.92 $21.51 3,818,366 $21.34
$22.18 - $28.41 ........................ 2,970,906 5.70 $22.89 1,646,868 $22.74
20,597,538 4.99 $19.10 13,262,851 $18.90
Vested or expected to vest as of January
28,2012 ............................. 19,162,478 4.77 $19.07
The aggregate intrinsic value of options outstanding, options vested or expected to vest, and options exercisable as
of January 28, 2012 was $26 million, $24 million, and $17 million, respectively. Stock options exercisable as of
January 28, 2012 had a weighted-average remaining contractual life of 3.73 years.
Employee Stock Purchase Plan
Under our Employee Stock Purchase Plan (“ESPP”), eligible U.S. employees are able to purchase our common stock
at 85 percent of the closing price on the New York Stock Exchange on the last day of the three-month purchase
periods. Accordingly, compensation expense is recognized for an amount equal to the 15 percent discount.
Employees pay for their stock purchases through payroll deductions at a rate equal to any whole percentage from
1 percent to 15 percent. There were 1,357,769, 1,301,167, and 1,574,464 shares issued under the ESPP in fiscal 2011,
2010, and 2009, respectively. As of January 28, 2012, there were 6,025,890 shares reserved for future issuances
under the ESPP.
Note 10. Leases
We lease most of our store premises and some of our corporate facilities and distribution centers. These operating
leases expire at various dates through 2031. Most store leases are for a five-year base period and include options
that allow us to extend the lease term beyond the initial base period, subject to terms agreed upon at lease
inception. Some leases also include early termination options, which can be exercised under specific conditions.
We also lease certain equipment under operating leases that expire at various dates through 2015.
64 Gap Inc. Form 10-K