Best Buy 2008 Annual Report Download - page 88

$ in millions, except per share amounts or as otherwise noted
price exceeded the specified stock price for more than 20 granted to our employees, officers, advisors, consultants
trading days in a 30-day trading period. Therefore, and directors. Awards issued under the Omnibus Plan vest
debenture holders had the option to convert their as determined by the Compensation and Human
debentures into shares of our common stock. However, no Resources Committee of our Board of Directors at the time
debentures were so converted. Due to changes in the price of grant. At March 1, 2008, a total of 17.8 million shares
of our common stock, the debentures were no longer were available for future grants under the Omnibus Plan.
convertible at March 3, 2007, and have not been Upon adoption and approval of the Omnibus Plan, all of
convertible at the holders’ option through April 25, 2008. our previous equity incentive compensation plans were
The debentures have an interest rate of 2.25% per annum. terminated. However, existing awards under those plans
The interest rate may be reset, but not below 2.25% or will continue to vest in accordance with the original vesting
above 3.25%, on July 15, 2011, and July 15, 2016. One schedule and will expire at the end of their original term.
of our subsidiaries has guaranteed the convertible Our outstanding stock options have a 10-year term.
debentures. Outstanding stock options issued to employees generally
vest over a four-year period, and outstanding stock options
Other issued to directors vest immediately upon grant. Share
The fair value of debt approximated $853 and $683 at awards vest based either upon attainment of established
March 1, 2008, and March 3, 2007, respectively, based goals or upon continued employment (‘‘time-based’’).
on the ask prices quoted from external sources, compared Outstanding share awards that are not time-based vest at
with carrying values of $816 and $650, respectively. the end of a three-year incentive period based either upon
our total shareholder return (‘‘TSR’’) compared with the
At March 1, 2008, the future maturities of long-term debt, TSR of companies that comprise the S&P 500 or growth in
including capitalized leases, consisted of the following: our common stock price (‘‘market-based’’), or upon the
Fiscal Year achievement of company or personal performance goals
2009 $ 33 (‘‘performance-based’’). We have time-based share
2010 41 awards that vest at the end of three-year periods and
2011 26 time-based share awards where 25% of the award vests at
2012(1) 424 the date of grant and 25% vests on each anniversary date
2013 22 thereafter over a period of three years.
Thereafter 114 Our employee stock purchase plan (‘‘ESPP’’) permits
Total long-term debt $660 employees to purchase stock at 85% of the market price
of our common stock at the beginning or at the end of the
(1) Holders of our debentures due in 2022 may require us to
semi-annual purchase period, whichever is less.
purchase all or a portion of their debentures on January 15,
2012. The table above assumes that all holders of our
Stock-based compensation expense was as follows in fiscal
debentures exercise their redemption options.
2008, 2007 and 2006:
5. Shareholders’ Equity 2008 2007 2006
Stock Compensation Plans Stock options $ 69 $ 75 $100
Share awards:
Our 2004 Omnibus Stock and Incentive Plan, as Market-based 15 20 20
amended, (‘‘Omnibus Plan’’) authorizes us to grant or Performance-based 4 9 1
issue non-qualified stock options (‘‘stock options’’), Time-based 3 3 1
incentive stock options, share awards and other equity ESPP 14 14 10
awards up to a total of 38 million shares. We have not
Total $105 $121 $132
granted incentive stock options under the Omnibus Plan.
Under the terms of the Omnibus Plan, awards may be
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