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Share-Based Compensation (Tables)

9 Months Ended

Oct. 29, 2022

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				Thirty-nine weeks ended
	October 29,		October 30,		October 29,		October 30,
($ in millions)	2022		2021		2022		2021
Options and employee stock purchase plan	$	1	$	1	$	4	$	5
Restricted stock units and performance stock units		8		6		21		18
Total share-based compensation expense	$	9	$	7	$	25	$	23

Tax benefit recognized	$	—	$	—	$	2	$	2

Assumptions used to Compute Share-Based Compensation Expense

The table below shows assumptions used to compute share-based compensation expense for awards granted during the thirty-nine weeks ended October 29, 2022 and October 30, 2021.


		Stock Option Plans						Stock Purchase Plan
	October 29,			October 30,			October 29,			October 30,
	2022			2021			2022			2021
Weighted-average risk free rate of interest		1.7	%		0.9	%		0.7	%		0.1	%
Expected volatility		35.0	%		47	%		40	%		45	%
Weighted-average expected award life (in years)		3.8			5.5			1.0			1.0
Dividend yield		2.7	%		1.5	%		2.3	%		4.4	%
Weighted-average fair value	$	10.71		$	20.22		$	20.51		$	8.78

Options Granted under Stock Option Plans

The information in the table below provides activity under our stock option plans for the thirty-nine weeks ended October 29, 2022.


		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	3,211			$	48.84
Granted	576				31.53
Exercised	(134)				25.99
Expired or cancelled	(282)				42.62
Options outstanding at October 29, 2022	3,371		4.8	$	47.31
Options exercisable at October 29, 2022	2,610		3.6	$	51.82
Shares available for future grant at October 29, 2022 under the 2007 Stock Incentive Plan	2,822
Shares available for future grant at October 29, 2022 under the employment inducement award plan ⁽¹⁾	546

(1)

On August 24, 2022, the Company granted options and other awards to its new President and Chief Executive Officer, Mary N. Dillon. These awards were granted outside of the 2007 Stock Incentive Plan as employment inducement awards and do not require shareholder approval under the rules of the New York Stock Exchange or otherwise. Shares available for future grant under this plan are reserved for the sole purpose to issue shares pursuant to her employment inducement awards.

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				Thirty-nine weeks ended
	October 29,		October 30,		October 29,		October 30,
($ in millions)	2022		2021		2022		2021
Exercised	$	—	$	—	$	1	$	8

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:

Information about Stock Options Outstanding and Exercisable

The table below summarizes information about stock options outstanding and exercisable at October 29, 2022


	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)
$21.60 - $36.51	1,241	7.1	$	26.41	584	$	24.22
$44.78 - $48.98	446	3.0		45.02	446		45.02
$53.61 - $58.94	501	5.5		56.69	397		57.44
$62.02 - $72.83	1,183	2.7		66.14	1,183		66.14
	3,371	4.8	$	47.31	2,610	$	51.82

Restricted Share and Unit Activity

RSU and PSU activity for the thirty-nine weeks ended October 29, 2022 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		1,391			$	43.95
Granted		1,221				30.60
Vested		(112)				55.20
Performance adjustment ⁽¹⁾		(40)
Forfeited		(314)				32.89
Nonvested at October 29, 2022		2,146		1.6	$	37.15

Aggregate value ($ in millions)	$	80

(1)	This represents adjustments made to PSUs reflecting changes in estimates based upon our current performance against predefined financial targets.

Thirty-nine weeks ended

October 29,

October 30,

($ in millions)

Outstanding

Outstanding and exercisable