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Share-Based Compensation (Tables)
 12 Months Ended
Feb. 02, 2019
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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

2018

    

2017

    

2016

 

 

($ in millions)

Options and shares purchased under the ESPP

 

$

 7

 

$

 9

 

$

10

Restricted stock and restricted stock units

 

 

15

 

 

 6

 

 

12

Total share-based compensation expense

 

$

22

 

$

15

 

$

22

 

 

 

 

 

 

 

 

 

 

Tax benefit recognized

 

$

 3

 

$

 4

 

$

 6

 

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 

 

 

    

2018

    

2017

    

2016

    

2018

    

2017

    

2016

 

Weighted-average risk free rate of interest

 

 

2.7

%  

 

2.1

%  

 

1.4

%  

 

2.0

%  

 

1.0

%  

 

0.5

%

Expected volatility

 

 

37

%  

 

25

%  

 

30

%  

 

50

%  

 

30

%  

 

27

%

Weighted-average expected award life (in years)

 

 

5.5

 

 

5.4

 

 

5.7

 

 

1.0

 

 

1.0

 

 

1.0

 

Dividend yield

 

 

3.1

%  

 

1.9

%  

 

1.7

%  

 

2.0

%  

 

2.0

%  

 

1.8

%

Weighted-average fair value

 

$

12.42

 

$

14.74

 

$

15.71

 

$

15.29

 

$

10.96

 

$

13.33

 

 

Options Granted under Stock Option Plans

The information set forth in the following table covers options granted under the Company’s stock option plans:

 

 

 

 

 

 

 

 

 

 

    

 

    

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

 

2,739

 

 

 

 

$

52.45

Granted

 

397

 

 

 

 

 

44.95

Exercised

 

(163)

 

 

 

 

 

30.73

Expired or cancelled

 

(112)

 

 

 

 

 

60.41

Options outstanding at February 2, 2019

 

2,861

 

 

6.0

 

$

52.34

Options exercisable at February 2, 2019

 

1,994

 

 

5.0

 

$

50.13

 

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:

 

 

 

 

 

 

 

 

 

 

 

    

2018

    

2017

    

2016

 

 

($ in millions)

Exercised

 

$

 4

 

$

22

 

$

56

 

Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable

The aggregate intrinsic value for stock options outstanding, and those outstanding and 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:

 

 

 

 

 

    

2018

 

 

($ in millions)

Outstanding

 

$

24

Outstanding and exercisable

 

$

20

 

Information about Stock Options Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at February 2, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

$9.85 to $18.84

 

225

 

1.7

 

$

17.10

 

225

 

$

17.10

$24.75 to $34.75

 

384

 

4.0

 

 

32.11

 

346

 

 

31.82

$44.78 to $45.75

 

649

 

7.2

 

 

44.92

 

295

 

 

45.08

$46.64 to $62.11

 

693

 

5.7

 

 

60.63

 

660

 

 

61.19

$63.79 to $73.21

 

910

 

7.5

 

 

68.57

 

468

 

 

67.19

 

 

2,861

 

6.0

 

$

52.34

 

1,994

 

$

50.13

 

Restricted Share and Unit Activity

Restricted stock and RSU activity 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

 

 

374

 

 

 

 

$

59.15

Granted (1)

 

 

683

 

 

 

 

 

45.49

Vested

 

 

(106)

 

 

 

 

 

64.32

Performance adjustment (2) 

 

 

158

 

 

 

 

 

 

Expired or cancelled

 

 

(87)

 

 

 

 

 

58.41

Nonvested at February 2, 2019

 

 

1,022

 

 
1.9

 

$

47.47

Aggregate value ($ in millions)

 

$

49

 

 

  

 

 

 

 

 

(1)

 

Approximately 0.4 million performance-based RSUs were granted during 2018 and are included as granted in the table above. The number of performance-based RSUs that are ultimately earned may vary from 0% to 200% of target depending on the achievement relative to the Company’s predefined financial performance targets.

(2)

Represents adjustments that were made to performance-based RSUs previously granted. These adjustments reflect changes in estimates based upon the Company’s current performance against predefined financial targets.