Annual report pursuant to Section 13 and 15(d)

Stock Based Compensation (Tables)

v2.4.0.6
Stock Based Compensation (Tables)
12 Months Ended
Jan. 28, 2012
Components of Stock Based Compensation Expense
Stock-based compensation expense included the following components:
 
 
2011
 
2010
 
2009
 
(millions)
Stock options
$
28

 
$
34

 
$
43

Stock credits
20

 
19

 
26

Restricted stock
2

 
2

 
3

Restricted stock units
20

 
11

 
4

 
$
70

 
$
66

 
$
76



Weighted Average Assumption Used To Estimate Fair Value of Stock Options
The fair value of stock-options granted during 2011, 2010 and 2009 and the weighted average assumptions used to estimate the fair value are as follows:
 
 
2011
 
2010
 
2009
Weighted average grant date fair value of stock options
granted during the period
$
7.12

 
$
7.34

 
$
2.51

Dividend yield
2.3
%
 
1.0
%
 
2.3
%
Expected volatility
38.8
%
 
37.6
%
 
36.4
%
Risk-free interest rate
2.0
%
 
2.7
%
 
1.9
%
Expected life
5.6 years
 
5.5 years
 
5.4 years
Schedule of Stock Option Activity
Stock option activity for 2011 is as follows:
 
 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
 
(thousands)
 
 
 
(years)
 
(millions)
Outstanding, beginning of period
38,101.3

 
$
25.59

 
 
 
 
Granted
4,874.9

 
$
23.43

 
 
 
 
Canceled or forfeited
(1,532.7
)
 
$
26.90

 
 
 
 
Exercised
(7,038.2
)
 
$
20.07

 
 
 
 
Outstanding, end of period
34,405.3

 
$
26.36

 
 
 
 
Exercisable, end of period
23,381.3

 
$
29.57

 
4.1

 
$
99

Options expected to vest
9,701.1

 
$
19.56

 
8.1

 
$
138

Additional Information Relating to Stock Options
Additional information relating to stock options is as follows:
 
 
2011
 
2010
 
2009
 
(millions)
Intrinsic value of options exercised
$
64

 
$
13

 
$
2

Grant date fair value of stock options that vested during the year
50

 
55

 
71

Cash received from stock options exercised
141

 
39

 
8

Tax benefits realized from exercised stock options
and vested restricted stock
20

 
4

 

Activity Related to Stock Credits
Activity related to stock credits for 2011 is as follows:
 
 
Shares
Stock credits, beginning of period
2,418,345

Additional dividend equivalents earned
20,961

Stock credits forfeited
(61,807
)
Stock credits distributed
(727,629
)
Stock credits, end of period
1,649,870

Fair Value of Restricted Stock Awards and Restricted Stock Units Granted

The weighted average grant date fair value of restricted stock and restricted stock units granted during 2011, 2010 and 2009 are as follows:
 
 
2011
 
2010
 
2009
Restricted stock
$
23.43

 
$
20.89

 
$

Restricted stock units
$
23.69

 
$
20.95

 
$
3.59

Restricted Stock [Member]
 
Activity Related to Restricted Stock and Restricted Stock Units
Restricted stock award activity for 2011 is as follows:
 
 
Shares
 
Weighted
Average
Grant Date
Fair Value
Nonvested, beginning of period
250,046

 
$
28.48

Granted
115,236

 
23.43

Forfeited
(5,724
)
 
21.84

Vested
(145,936
)
 
33.90

Nonvested, end of period
213,622

 
$
22.23

Restricted Stock Units [Member]
 
Activity Related to Restricted Stock and Restricted Stock Units
Activity related to restricted stock units for 2011 is as follows:
 
 
Shares
 
Weighted
Average
Grant Date
Fair Value
Nonvested, beginning of period
3,788,634

 
$
8.57

Granted – performance-based
715,100

 
23.43

Performance adjustment
476,922

 
22.72

Granted – time-based
37,719

 
28.63

Dividend equivalents
116,422

 
23.04

Forfeited
(288,071
)
 
10.29

Vested
(40,401
)
 
22.54

Nonvested, end of period
4,806,325

 
$
12.47