Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation (Tables)

v3.6.0.2
Stock-Based Compensation (Tables)
12 Months Ended
Jan. 28, 2017
Share-based Compensation [Abstract]  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
The components of total stock-based compensation costs are as follows:
($ in millions)
2016
 
2015
 
2014
Stock awards
$
27

 
$
32

 
$
20

Stock options
8

 
12

 
13

Total stock-based compensation(1)
$
35

 
$
44

 
$
33

 
 
 
 
 
 
Total income tax benefit recognized for stock-based compensation arrangements
$

 
$

 
$


(1)
Excludes $0 million, $9 million and $3 million for 2016, 2015 and 2014, respectively, of stock-based compensation costs reported in restructuring and management transition charges (Note 16).
Schedule of Share-based Compensation, Stock Options, Activity
The following table summarizes stock option activity during the year ended January 28, 2017:
 
 
Shares (in thousands)
 
Weighted - Average Exercise Price Per Share
 
Weighted - Average Remaining Contractual Term (in years)
 
Aggregate Intrinsic Value ($ in millions)(1) 
Outstanding at January 30, 2016
 
16,096

 
$
24

 
 
 
 
Granted
 
2,072

 
11

 
 
 
 
Exercised
 
(223
)
 
8

 
 
 
 
Forfeited/canceled
 
(3,527
)
 
43

 
 
 
 
Outstanding at January 28, 2017
 
14,418

 
18

 
5.6
 
$

Exercisable at January 28, 2017
 
8,169

 
25

 
3.6
 
$

 
(1)
The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option at year end.
Schedule of Cash Proceeds Received from Share-based Payment Awards
Cash proceeds, tax benefits and intrinsic value related to total stock options exercised are provided in the following table:
($ in millions)
 
2016
 
2015
 
2014
Proceeds from stock options exercised
 
$
2

 
$

 
$

Intrinsic value of stock options exercised
 

 

 

Tax benefit related to stock-based compensation
 

 

 

Excess tax benefits realized on stock-based compensation
 

 

 

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
Our weighted-average fair value of stock options at grant date was $4.89 in 2016, $3.48 in 2015 and $3.78 in 2014. We primarily used the binomial lattice valuation model in 2016 and 2015 and the Monte Carlo simulation model in 2014 to determine the fair value of the stock options granted using the following assumptions:
 
 
2016
 
2015
 
2014
Weighted-average expected option term
 
4.7 years
 
4.6 years
 
4.1 years
Weighted-average expected volatility
 
54.22%
 
51.46%
 
60.00%
Weighted-average risk-free interest rate
 
1.38%
 
1.50%
 
1.60%
Weighted-average expected dividend yield (1)
 
—%
 
—%
 
—%
Expected dividend yield range (1)
 
—%
 
—%
 
—%


(1) Following the May 1, 2012 payment, we discontinued the quarterly $0.20 per share dividend.
Schedule of Nonvested Restricted Stock Units Activity
The following table summarizes our non-vested stock awards activity during the year ended January 28, 2017:  
 
Time-Based Stock Awards
 
Performance-Based Stock Awards
(shares in thousands)
Number of Units
 
Weighted-Average Grant Date Fair Value
 
Number of Units
 
Weighted-Average Grant Date Fair Value
Non-vested at January 30, 2016
7,698

 
$
9

 
2,557

 
$
7

Granted
1,501

 
10

 
1,071

 
11

Vested
(2,793
)
 
9

 
(418
)
 
7

Forfeited/canceled
(588
)
 
9

 
(82
)
 
8

Non-vested at January 28, 2017
5,818

 
9

 
3,128

 
8