Accelerated Share Repurchase

3 Months Ended

May 01, 2011

Accelerated Share Repurchase

Accelerated Share Repurchase

3.  ACCELERATED SHARE REPURCHASE

In March 2011, the Company entered into an ASR agreement with a third-party financial institution to repurchase $1.0 billion of the Company's common stock. Under the agreement, in the first quarter of fiscal 2011 the Company paid $1.0 billion to the financial institution, using a portion of the proceeds from the March 2011 issuance, and received an initial delivery of approximately 21 million shares. The fair market value of the 21 million shares on the date of purchase was $780 million and was included in Treasury Stock in the accompanying Consolidated Balance Sheets as of May 1, 2011. The remaining $220 million was included in Paid-In Capital in the accompanying Consolidated Balance Sheets as of May 1, 2011.

The transaction was completed in the second quarter of fiscal 2011, with the Company receiving an additional 6 million shares, at which time the $220 million initially included in Paid-In Capital was reclassified to Treasury Stock. The final number of shares delivered upon settlement of the agreement was determined with reference to the average price of the Company's common stock over the term of the ASR agreement.