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Share-Based Compensation (Tables)
3 Months Ended
May 01, 2021
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

May 1,

May 2,

($ in millions)

    

2021

    

2020

Options and shares purchased under the stock purchase plan

$

2

$

2

Restricted stock units and performance stock units

 

6

 

1

Total share-based compensation expense

$

8

$

3

Tax benefit recognized

$

1

$

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 thirteen weeks ended May 1, 2021 and May 2, 2020:

Stock Option Plans

Stock Purchase Plan

May 1,

May 2,

May 1,

May 2,

    

2021

    

2020

    

2021

    

2020

    

Weighted-average risk free rate of interest

 

0.9

%  

0.6

%  

0.2

%  

2.2

%  

Expected volatility

 

47

%  

42

%  

48

%  

48

%  

Weighted-average expected award life (in years)

 

5.5

 

5.5

 

1.0

 

1.0

 

Dividend yield

 

1.5

%  

4.9

%  

5.6

%  

3.8

%  

Weighted-average fair value

$

20.22

$

5.03

$

6.35

$

11.91

Options Granted under Stock Option Plans

The information in the table below provides activity under our stock option plans for the thirteen weeks ended May 1, 2021:

    

    

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

 

3,540

 

$

47.17

Granted

 

183

 

 

53.82

Exercised

 

(125)

 

 

31.93

Expired or cancelled

 

(102)

 

 

55.05

Options outstanding at May 1, 2021

 

3,496

 

5.6

$

47.83

Options exercisable at May 1, 2021

 

2,680

 

4.5

$

52.49

Options available for future grant at May 1, 2021

5,455

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

($ in millions)

May 1, 2021

May 2, 2020

Exercised

$

3

$

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:

Thirteen weeks ended

($ in millions)

May 1, 2021

May 2, 2020

Outstanding

$

48

$

3

Outstanding and exercisable

$

27

$

1

Information about Stock Options Outstanding and Exercisable

The table below summarizes information about stock options outstanding and exercisable at May 1, 2021:

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 - $34.24

 

1,130

6.6

$

24.34

 

581

$

26.91

$34.75 - $52.13

 

540

4.7

 

44.46

 

532

 

44.47

$52.82 - $79.23

 

1,826

5.2

 

63.35

 

1,567

 

64.68

 

3,496

 

5.6

$

47.83

 

2,680

$

52.49

Restricted Share and Unit Activity

RSU and PSU activity for the thirteen weeks ended May 1, 2021 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

 

1,348

 

$

38.48

Granted

 

414

 

 

54.01

Vested

 

(468)

 

 

44.98

Performance adjustment (1)

186

Forfeited

 

(16)

 

 

29.88

Nonvested at May 1, 2021

 

1,464

 

2.2

$

42.57

Aggregate value ($ in millions)

$

62

 

  

 

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