Annual report pursuant to Section 13 and 15(d)

Stock Based Compensation (Tables)

v3.19.1
Stock Based Compensation (Tables)
 12 Months Ended
Feb. 02, 2019
Components of Stock Based Compensation Expense
Stock-based compensation expense included the following components:
 
 
2018
 
2017
 
2016
 
(millions)
Stock options
$
24

 
$
34

 
$
43

Restricted stock units
39

 
24

 
18

 
$
63

 
$
58

 
$
61

Weighted Average Assumption Used To Estimate Fair Value of Stock Options
The fair value of stock options granted during 2018, 2017 and 2016 and the weighted average assumptions used to estimate the fair value are as follows:
 
 
2018
 
2017
 
2016
Weighted average grant date fair value of stock options
granted during the period
$
7.43

 
$
5.84

 
$
12.14

Dividend yield
5.2
%
 
6.2
%
 
3.8
%
Expected volatility
41.1
%
 
41.8
%
 
42.7
%
Risk-free interest rate
2.7
%
 
1.9
%
 
1.4
%
Expected life
5.6 years

 
5.7 years

 
5.7 years

Schedule of Stock Option Activity
Activity related to stock options for 2018 is as follows:
 
 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
 
(thousands)
 
 
 
(years)
 
(millions)
Outstanding, beginning of period
20,376

 
$
38.80

 
 
 
 
Granted
1,495

 
29.53

 
 
 
 
Canceled or forfeited
(794
)
 
47.93

 
 
 
 
Exercised
(2,184
)
 
21.02

 
 
 
 
Outstanding, end of period
18,893

 
$
39.73

 
 
 
 
Exercisable, end of period
12,960

 
$
41.93

 
4.5
 
$
18

Options expected to vest
4,937

 
$
34.37

 
8.0
 
$
3

Additional Information Relating to Stock Options
Additional information relating to stock options is as follows:
 
 
2018
 
2017
 
2016
 
(millions)
Intrinsic value of options exercised
$
27

 
$
3

 
$
12

Cash received from stock options exercised
45

 
6

 
35

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 2018, 2017 and 2016 are as follows:
 
 
2018
 
2017
 
2016
Restricted stock units (performance-based)
$
30.64

 
$
27.16

 
$
43.72

Restricted stock units (time-based)
25.57

 
20.75

 
35.61

Schedule of Nonvested Restricted Stock Units Activity
Activity related to restricted stock units for 2018 is as follows:
 
 
Shares
 
Weighted
Average
Grant Date
Fair Value
 
(thousands)
 
 
Nonvested, beginning of period
3,157

 
$
30.51

Granted – performance-based
749

 
30.64

Performance adjustment
(455
)
 
43.72

Granted – time-based
1,427

 
25.57

Forfeited
(203
)
 
25.94

Vested
(532
)
 
40.43

Nonvested, end of period
4,143

 
$
26.33