Banana Republic 2014 Annual Report Download - page 71

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59
The fair value of stock options issued during fiscal 2014, 2013, and 2012 was estimated on the date of grant using
the following assumptions:
Fiscal Year
2014 2013 2012
Expected term (in years) 4.4 4.5 4.6
Expected volatility 27.3% 31.5% 33.6%
Dividend yield 2.1% 1.7% 2.1%
Risk-free interest rate 1.3% 0.7% 1.0%
A summary of stock option activity under the 2011 Plan and the 2002 Plan for fiscal 2014 is as follows:
Shares
Weighted-
Average
Exercise Price
Balance as of February 1, 2014 7,399,822 $ 24.89
Granted 1,556,625 $ 42.18
Exercised (2,892,590) $ 21.35
Forfeited/Expired (868,592) $ 31.69
Balance as of January 31, 2015 5,195,265 $ 30.89
A summary of additional information about stock options is as follows:
Fiscal Year
2014 2013 2012
Weighted-average fair value per share of stock options granted $ 8.20 $ 8.25 $ 6.35
Aggregate intrinsic value of stock options exercised (in millions) $ 63 $ 125 $ 94
Fair value of stock options vested (in millions) $ 10 $ 14 $ 15
Information about stock options outstanding, vested or expected to vest, and exercisable as of January 31, 2015
is as follows:
Options Outstanding Options Exercisable
Range of Exercise Prices
Number of
Shares as of
January 31, 2015
Weighted-
Average
Remaining
Contractual
Life (in years)
Weighted-
Average
Exercise Price
Number of
Shares as of
January 31, 2015
Weighted-
Average
Exercise Price
$11.77 - $21.79 1,531,249 4.84 $ 20.63 1,087,788 $ 20.22
$22.25 - $25.09 1,048,257 6.31 $ 24.63 406,831 $ 24.03
$27.43 - $36.45 1,195,284 7.77 $ 36.25 289,965 $ 36.10
$36.87 - 42.12 128,300 9.02 $ 39.94 12,849 $ 39.15
$42.20 - $46.41 1,292,175 9.14 $ 42.28 800 $ 43.31
5,195,265 6.98 $ 30.89 1,798,233 $ 23.79
Vested or expected to vest as
of January 31, 2015 4,913,907 6.89 $ 30.46
The aggregate intrinsic value of options outstanding, options vested or expected to vest, and options exercisable
as of January 31, 2015 was $55 million, $54 million, and $31 million, respectively. Stock options exercisable as of
January 31, 2015 had a weighted-average remaining contractual life of 4.92 years.