Share-Based Compensation (Tables)

3 Months Ended

May 02, 2015

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 the Company’s share-based compensation plans were as follows:

	Thirteen weeks ended
	May 2,		May 3,
	2015		2014
	(in millions)
Options and shares purchased under the employee stock purchase plan	$	3	$	3
Restricted stock and units		3		3
Total share-based compensation expense	$	6	$	6
Tax benefit recognized	$	2	$	2
Excess income tax benefit from settled equity-classified share-based awards reported as a cash flow from financing activities	$	14	$	7

Assumptions used to Compute Share-Based Compensation Expense

The following table shows the Company’s assumptions used to compute the share-based compensation expense:

	Stock Option Plans						Stock Purchase Plan
	May 2,			May 3,			May 2,			May 3,
	2015			2014			2015			2014
Weighted-average risk free rate of interest		1.51	%		2.12	%		0.13	%		0.17	%
Expected volatility		30	%		39	%		23	%		25	%
Weighted-average expected award life		6.0 years			6.1 years			1.0 year			1.0 year
Dividend yield		1.6	%		2.0	%		1.82	%		2.3	%
Weighted-average fair value	$	16.01		$	14.91		$	8.03		$	5.79

Options Granted under Stock Option Plans

The information in the following table covers options granted under the Company’s stock option plans for the thirteen weeks ended May 2, 2015:

			Weighted-		Weighted-Average
			Average		Exercise
	Shares		Term		Price
	(in thousands, except price per share and weighted-average term)
Options outstanding at the beginning of the year		5,569			$	25.89
Granted		682				62.11
Exercised		(1,000)				22.84
Expired or cancelled		(49)				48.47
Options outstanding at May 2, 2015		5,202		6.68	$	31.01
Options exercisable at May 2, 2015		3,685		5.67	$	23.09
Options vested and expected to vest at May 2, 2015		5,144		6.65	$	30.73
Options available for future grant at May 2, 2015		13,041

Total Intrinsic Value of Options Exercised

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

	Thirteen weeks ended
	May 2,		May 3,
	2015		2014
	(in millions)
Exercised	$	36	$	11

Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable

The aggregate intrinsic value for stock options outstanding and for stock options exercisable (the difference between the Company’s 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:

	Thirteen weeks ended
	May 2,		May 3,
	2015		2014
	(in millions)
Outstanding	$	153	$	128
Outstanding and exercisable	$	137	$	110
Vested and expected to vest	$	153	$	127

Information about Stock Options Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at May 2, 2015:

	Options Outstanding						Options Exercisable
			Weighted-
			Average		Weighted-				Weighted-
			Remaining		Average				Average
	Number		Contractual		Exercise		Number		Exercise
Range of Exercise Prices	Outstanding		Life		Price		Exercisable		Price
	(in thousands, except prices per share and contractual life)
$ 9.85 to $15.10		1,130		4.34	$	12.62		1,130	$	12.62
$18.80 to $25.19		1,201		5.09	$	19.81		1,201	$	19.81
$30.92 to $36.59		1,510		7.31	$	32.94		1,117	$	32.47
$45.08 to $62.11		1,361		9.33	$	54.05		237	$	45.46
		5,202		6.68	$	31.01		3,685	$	23.09

Restricted Share and Unit Activity

Restricted share and unit activity for the thirteen weeks ended May 2, 2015 is summarized as follows:

			Weighted-Average
			Grant Date Fair
	Number of Shares		Value per Share
	(in thousands, except price per share)
Nonvested at the beginning of the year		1,038	$	37.96
Granted		117		61.46
Vested		(280)		31.51
Expired or cancelled		(26)		43.57
Nonvested at May 2, 2015		849	$	43.14
Aggregate value (in millions)	$	37
Weighted-average remaining contractual life (in years)		1.47 years