Best Buy 2014 Annual Report Download - page 89

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The Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated
debt. The Notes contain covenants that, among other things, limit our ability to incur debt secured by liens or to enter into sale
and lease-back transactions.
Other
The fair value of long-term debt approximated $1,690 million and $1,652 million at February 1, 2014, and February 2, 2013,
respectively, based primarily on the ask prices quoted from external sources, compared to carrying values of $1,657 million and
$1,700 million, respectively. If our long-term debt was recorded at fair value, it would be classified as Level 1.
At February 1, 2014, the future maturities of long-term debt, including capitalized leases, consisted of the following ($ in
millions):
Fiscal Year
2015 $ 45
2016 38
2017 372
2018 16
2019 509
Thereafter 677
Total long-term debt $ 1,657
8. Shareholders' Equity
Stock Compensation Plans
Our 2004 Omnibus Stock and Incentive Plan, as amended (the "Omnibus Plan"), authorizes us to grant or issue non-qualified
stock options, incentive stock options, share awards and other equity awards up to a total of 64.5 million shares with a limit of
26.3 million shares of restricted stock awards, restricted stock units, dividend equivalents settled in shares and other stock
grants. We have not granted incentive stock options under the Omnibus Plan. Under the terms of the Omnibus Plan, awards
may be granted to our employees, officers, advisors, consultants and directors. Awards issued under the Omnibus Plan vest as
determined by the Compensation and Human Resources Committee of our Board of Directors at the time of grant. At
February 1, 2014, a total of 19.1 million shares in total, and10.0 million shares of restricted stock awards, restricted stock units,
dividend equivalents settled in shares and other stock grants were available for future grants under the Omnibus Plan.
Upon adoption and approval of the Omnibus Plan, all of our previous equity incentive compensation plans were terminated.
However, existing awards under those plans continued to vest in accordance with the original vesting schedule and will expire
at the end of their original term.
Our outstanding stock options have a 10-year term. Outstanding stock options issued to employees generally vest over a three
or four-year period, and outstanding stock options issued to directors vest immediately upon grant. Share awards vest based
either upon attainment of specified goals or upon continued employment. Outstanding share awards that are not time-based vest
at the end of a three-year incentive period based upon our total shareholder return ("TSR") compared to the TSR of companies
that comprise Standard & Poor's 500 Index ("market-based"). We have time-based share awards that vest in their entirety at the
end of three- and four-year periods, time-based share awards where 25% of the award vests on the date of grant and 25% vests
on each of the three anniversary dates thereafter, and time-based share awards to directors vest one year from the grant date.
During fiscal 2014, our Employee Stock Purchase Plan was amended. The Plan permits employees to purchase our common
stock at a 5% discount from the market price at the end of semi-annual purchase periods and is non-compensatory. During
fiscal 2013 (11-month) and 2012, the Plan permitted our employees to purchase our common stock at a 15% discount from the
market price of the stock at the beginning or at the end of a semi-annual purchase period, whichever is less, and was considered
compensatory. Employees are required to hold the common stock purchased for 12 months. In fiscal 2014, 2013 (11-month)
and 2012, 0.6 million, 1.0 million and 1.4 million shares, respectively, were purchased through our employee stock purchase
plans. At February 1, 2014, and February 2, 2013, plan participants had accumulated $2 million and $4 million, respectively, to
purchase our common stock pursuant to these plans.