The Gap 2012 Annual Report Download - page 74

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56
A summary of additional information about stock options is as follows:
Fiscal Year
2012 2011 2010
Weighted-average fair value per share of stock options granted $ 6.35 $ 5.28 $ 5.57
Aggregate intrinsic value of stock options exercised (in millions) $ 94 $ 19 $ 19
Fair value of stock options vested (in millions) $ 15 $ 15 $ 15
Information about stock options outstanding, vested or expected to vest, and exercisable as of February 2, 2013 is
as follows:
Options Outstanding Options Exercisable
Range of Exercise Prices
Number of
Shares as of
February 2, 2013
Weighted-
Average
Remaining
Contractual
Life (in years)
Weighted-
Average
Exercise Price
Number of
Shares as of
February 2, 2013
Weighted-
Average
Exercise Price
$11.77 - $16.44 2,817,605 4.60 $ 15.01 1,981,010 $ 15.36
$16.90 - $19.68 3,127,468 4.54 $ 18.92 2,644,343 $ 18.94
$19.72 - $21.79 3,176,244 5.86 $ 21.60 1,435,212 $ 21.42
$21.88 - $25.09 3,281,788 7.85 $ 24.21 596,340 $ 22.90
$27.43 - $36.10 397,250 9.70 $ 34.50 750 $ 28.41
12,800,355 5.89 $ 20.56 6,657,655 $ 18.77
Vested or expected to vest as of
February 2, 2013 11,376,064 5.61 $ 20.32
The aggregate intrinsic value of options outstanding, options vested or expected to vest, and options exercisable as of
February 2, 2013 was $160 million, $144 million, and $95 million, respectively. Stock options exercisable as of February 2,
2013 had a weighted-average remaining contractual life of 4.15 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 960,930, 1,357,769, and 1,301,167 shares issued under the ESPP in fiscal 2012, 2011, and 2010,
respectively. As of February 2, 2013, there were 5,064,960 shares reserved for future issuances under the ESPP.
Note 11. 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 2030. Most store leases have 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 2018.
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