Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation (Tables)

v2.4.0.8
Stock-Based Compensation (Tables)
12 Months Ended
Feb. 01, 2014
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)
2013
 
2012
 
2011
Stock awards
$
14

 
$
33

 
$
22

Stock options
14

 
17

 
24

Total stock-based compensation(1)
$
28

 
$
50

 
$
46

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

 
$
19

 
$
18


(1)
Excludes $18 million, $11 million and $79 million for 2013, 2012 and 2011, respectively, of stock-based compensation costs reported in restructuring and management transition charges (see Note 16).
Schedule of Share-based Compensation, Stock Options, Activity
The following table summarizes stock option activity during the year ended February 1, 2014:  
 
 
 
Shares (in thousands)
 
Weighted - Average Exercise Price Per Share
 
Weighted - Average Remaining Contractual Term (in years)
 
Aggregate Intrinsic Value ($ in millions)(1) 
Outstanding at February 2, 2013
 
13,593

 
$
40

 
 
 
 
Granted
 
3,448

 
15

 
 
 
 
Exercised
 
(397
)
 
16

 
 
 
 
Forfeited/canceled
 
(2,615
)
 
30

 
 
 
 
Outstanding at February 1, 2014
 
14,029

 
36

 
4.4
 
$

Exercisable at February 1, 2014
 
10,617

 
41

 
3.0
 
$

 
(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. As of February 1, 2014, all outstanding stock options had an exercise price above the closing price of JCPenney common stock of $5.92.
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)
 
2013
 
2012
 
2011
Proceeds from stock options exercised
 
$
7

 
$
71

 
$
18

Intrinsic value of stock options exercised
 
2

 
38

 
28

Tax benefit related to stock-based compensation
 

 
15

 
11

Excess tax benefits realized on stock-based compensation
 

 
12

 
10

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
Our weighted-average fair value of stock options at grant date was $7.15 in 2013, $11.49 in 2012 and $11.37 in 2011 using the binomial lattice valuation model and the following assumptions:
   
 
 
2013
 
2012
 
2011
Weighted-average expected option term
 
4.4 years
 
4.9 years
 
4.5 years
Weighted-average expected volatility
 
62.00%
 
45.30%
 
41.20%
Weighted-average risk-free interest rate
 
0.64%
 
0.87%
 
1.75%
Weighted-average expected dividend yield
 
—%
 
1.40%
 
2.20%
Expected dividend yield range
 
—%
 
2.0% – 2.1%
 
1.8% – 2.2%
Schedule of Nonvested Restricted Stock Units Activity
The following table summarizes our non-vested stock awards activity during the year ended February 1, 2014:  
 
Time-Based Stock Awards
 
Performance-Based Stock Awards
(shares in thousands)
Number of Units
 
Weighted- Date Fair Value
 
Number of Units
 
Weighted- Date Fair Value
Non-vested at February 2, 2013
3,418

 
$
31

 
44

 
$
31

Granted
971

 
15

 
1,082

 
14

Vested
(1,344
)
 
29

 
(155
)
 
19

Forfeited/canceled
(1,688
)
 
29

 
(898
)
 
14

Non-vested at February 1, 2014
1,357

 
23

 
73

 
7