Kohl's 2008 Annual Report Download - page 61

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KOHL’S CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
7. Stock-Based Compensation (continued)
The following table summarizes nonvested stock activity for 2008, 2007 and 2006:
2008 2007 2006
Shares
Weighted
Average
Grant
Date Fair
Value Shares
Weighted
Average
Grant
Date Fair
Value Shares
Weighted
Average
Grant
Date Fair
Value
(Shares in Thousands)
Balance at beginning of year ...................... 150 $69.98 128 $51.17 204 $48.82
Granted ................................... 187 44.86 116 75.95 37 55.98
Vested .................................... (54) 64.48 (77) 50.00 (102) 48.46
Forfeited .................................. (7) 54.90 (17) 60.22 (11) 49.25
Balance at end of year ........................... 276 $54.39 150 $69.98 128 $51.17
The aggregate fair value of awards at the time of vesting was $2 million in 2008, $4 million in 2007 and $6
million in 2006.
Other required disclosures
Stock-based compensation expense for both stock options and nonvested stock awards is included in
Selling, General and Administrative expense in our Consolidated Statements of Income. Such expense totaled
$55 million for 2008, $54 million for 2007 and $45 million for 2006.
Total unrecognized share-based compensation expense for all share-based payment plans was $126 million
at January 31, 2009, of which approximately $54 million is expected to be recognized in 2009, $44 million in
2010, $21 million in 2011, $6 million in 2012 and $1 million in 2013. Future compensation expense may be
impacted by future grants, changes in forfeiture estimates and/or actual forfeitures which differ from estimated
forfeitures.
8. Contingencies
We are involved in various legal matters arising in the normal course of business. In the opinion of
management, the outcome of such proceedings and litigation will not have a material adverse impact on our
financial position or results of operations.
9. Quarterly Financial Information (Unaudited)
2008
First Second Third Fourth
(In Millions, Except Per Share Data)
Net sales ..................................................... $3,624 $3,725 $3,804 $5,235
Gross margin .................................................. $1,335 $1,475 $1,423 $1,822
Net income ................................................... $ 153 $ 236 $ 160 $ 336
Basic shares ................................................... 309 306 305 305
Basic net income per share ....................................... $ 0.50 $ 0.77 $ 0.53 $ 1.10
Diluted shares ................................................. 309 307 305 305
Diluted net income per share ...................................... $ 0.49 $ 0.77 $ 0.52 $ 1.10
F-22