Annual report pursuant to Section 13 and 15(d)

Stock Based Compensation (Tables)

v3.20.1
Stock Based Compensation (Tables)
12 Months Ended
Feb. 01, 2020
Components of Stock Based Compensation Expense
Stock-based compensation expense included the following components:
 
 
2019
 
2018
 
2017
 
(millions)
Stock options
$
15

 
$
24

 
$
34

Restricted stock units
23

 
39

 
24

 
$
38

 
$
63

 
$
58


Weighted Average Assumption Used To Estimate Fair Value of Stock Options
The fair value of stock options granted during 2019, 2018 and 2017 and the weighted average assumptions used to estimate the fair value are as follows:
 
 
2019
 
2018
 
2017
Weighted average grant date fair value of stock options
granted during the period
$
5.11

 
$
7.43

 
$
5.84

Dividend yield
6.3
%
 
5.2
%
 
6.2
%
Expected volatility
40.6
%
 
41.1
%
 
41.8
%
Risk-free interest rate
2.4
%
 
2.7
%
 
1.9
%
Expected life
5.5 years

 
5.6 years

 
5.7 years


Schedule of Stock Option Activity
Activity related to stock options for 2019 is as follows:
 
 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
 
(thousands)
 
 
 
(years)
 
(millions)
Outstanding, beginning of period
18,893

 
$
39.73

 
 
 
 
Granted
1,994

 
23.94

 
 
 
 
Canceled or forfeited
(1,731
)
 
32.73

 
 
 
 
Exercised
(657
)
 
9.08

 
 
 
 
Outstanding, end of period
18,499

 
$
39.77

 
 
 
 
Exercisable, end of period
14,258

 
$
42.97

 
4.2
 
$

Options expected to vest
3,133

 
$
29.20

 
7.9
 
$


Additional Information Relating to Stock Options
Additional information relating to stock options is as follows:
 
 
2019
 
2018
 
2017
 
(millions)
Intrinsic value of options exercised
$
10

 
$
27

 
$
3

Cash received from stock options exercised
6

 
45

 
6


Restricted Stock Units [Member]  
Activity Related to Restricted Stock and Restricted Stock Units
The weighted average grant date fair values of performance-based and time-based restricted stock units granted during 2019, 2018 and 2017 are as follows:
 
 
2019
 
2018
 
2017
Restricted stock units (performance-based)
$
24.28

 
$
30.64

 
$
27.16

Restricted stock units (time-based)
17.81

 
25.57

 
20.75


Schedule of Nonvested Restricted Stock Units Activity
Activity related to restricted stock units for 2019 is as follows:
 
 
Shares
 
Weighted
Average
Grant Date
Fair Value
 
(thousands)
 
 
Nonvested, beginning of period
4,143

 
$
26.33

Granted – performance-based
861

 
24.28

Performance adjustment
(26
)
 
28.17

Granted – time-based
1,443

 
17.81

Forfeited
(909
)
 
23.88

Vested
(765
)
 
29.19

Nonvested, end of period
4,747

 
$
23.37