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Share-Based Compensation (Tables)
6 Months Ended
Aug. 01, 2020
Share-Based Compensation [Abstract]  
Total Compensation Expense and the Related Tax Benefits Recognized

Total compensation expense, included in SG&A, and the associated tax benefits recognized related to our share-based compensation plans, were as follows:

Thirteen weeks ended

Twenty-six weeks ended

($ in millions)

August 1, 2020

August 3, 2019

August 1, 2020

August 3, 2019

Options and shares purchased under stock purchase plan

$

2

$

2

$

4

$

4

Restricted stock units

 

2

 

4

 

3

 

9

Total share-based compensation expense

$

4

$

6

$

7

$

13

Tax benefit recognized

$

1

$

$

1

$

1

Assumptions used to Compute Share-Based Compensation Expense

The following table shows assumptions used to compute share-based compensation expense for awards granted during the twenty-six weeks ended August 1, 2020 and August 3, 2019:

Stock Option Plans

Stock Purchase Plan

August 1,

August 3,

August 1,

August 3,

    

2020

    

2019

    

2020

    

2019

    

Weighted-average risk free rate of interest

 

0.6

%  

2.2

%  

2.0

%  

2.3

%  

Expected volatility

 

42

%  

38

%  

48

%  

57

%  

Weighted-average expected award life (in years)

 

5.5

 

5.5

 

1.0

 

1.0

 

Dividend yield

 

4.9

%  

2.6

%  

4.0

%  

2.8

%  

Weighted-average fair value

$

5.03

$

17.19

$

15.03

$

20.33

Options Granted under Stock Option Plans

The information in the following table covers option activity under our stock option plans for the twenty-six weeks ended August 1, 2020:

    

    

Weighted-

    

Weighted-

Number

Average

Average

of

Remaining

Exercise

Shares

Contractual Life

Price

(in thousands)

(in years)

(per share)

Options outstanding at the beginning of the year

 

2,881

 

$

54.21

Granted

 

1,069

 

21.61

Exercised

 

(4)

 

15.10

Expired or cancelled

 

(57)

 

48.53

Options outstanding at August 1, 2020

 

3,889

 

6.4

$

45.37

Options exercisable at August 1, 2020

 

2,473

 

4.8

$

54.67

Options available for future grant at August 1, 2020

5,655

Total Intrinsic Value of Options Exercised

The total intrinsic value of options exercised (the difference between the market price of our common stock on the exercise date and the price paid by the optionee to exercise the option) is presented below:

Thirteen weeks ended

Twenty-six weeks ended

($ in millions)

August 1, 2020

August 3, 2019

August 1, 2020

August 3, 2019

Exercised

$

$

$

$

5

Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable

The aggregate intrinsic value for stock options outstanding, and outstanding and exercisable (the difference between our closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options) is presented below:

Twenty-six weeks ended

August 1, 2020

August 3, 2019

($ in millions)

Outstanding

$

10

$

5

Outstanding and exercisable

$

1

$

5

Information about Stock Options Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at August 1, 2020:

Options Outstanding

Options Exercisable

Weighted-

Average

Weighted-

Weighted-

Remaining

Average

Average

Range of Exercise

Number

Contractual

Exercise

Number

Exercise

Prices

    

Outstanding

    

Life

    

Price

    

Exercisable

    

Price

 

(in thousands, except prices per share and contractual life)

$18.84 to $23.09

 

1,176

8.8

$

21.33

117

$

18.84

$24.75 to $36.51

 

376

2.6

 

32.13

333

 

31.77

$44.78 to $45.75

 

561

5.7

 

44.91

454

 

44.94

$46.64 to $62.11

 

904

5.8

 

60.00

697

 

60.51

$63.33 to $73.21

872

5.9

68.60

872

68.60

 

3,889

 

6.4

$

45.37

 

2,473

$

54.67

Restricted Share and Unit Activity

RSU activity for the twenty-six weeks ended August 1, 2020 is summarized as follows:

Weighted-Average

Number

Remaining

Weighted-Average

of

Contractual

Grant Date

Shares

Life

Fair Value

    

(in thousands)

    

(in years)

    

(per share)

Nonvested at beginning of year

 

936

$

49.25

Granted

 

416

 

22.59

Vested

 

(67)

 

65.83

Performance adjustment (1)

(132)

Forfeited

 

(44)

 

43.45

Nonvested at August 1, 2020

 

1,109

 

1.4

$

37.65

Aggregate value ($ in millions)

$

42

 

  

 

(1)This represents adjustments made to performance-based RSU awards and reflect changes in estimates based upon our current performance against predefined financial targets.