Kohl's 2009 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2009 Kohl's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 73

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73

Table of Contents


 
Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $59 million as of January 30, 2010 and $60 million as of
January 31, 2009.
It is reasonably possible that our unrecognized tax positions may change within the next 12 months, primarily as a result of ongoing audits. While it is
possible that one or more of these examinations may be resolved in the next year, it is not anticipated that a significant impact to the unrecognized tax benefit
balance will occur.
 
We currently grant share-based compensation pursuant to our 1997 Stock Option Plan for Outside Directors and our 2003 Long-Term Compensation
Plan, which provides for the granting of various forms of equity-based awards, including nonvested stock and options to purchase shares of our common
stock, to officers and key employees. Annual grants of stock options and nonvested stock are made in the first quarter of the subsequent fiscal year. Grants to
newly-hired and promoted employees and other discretionary grants are made periodically throughout the remainder of the year. We also have outstanding
options which were granted to officers and key employees under our 1992 and 1994 Long-Term Compensation Plans.
The following table summarizes the number of options and nonvested stock authorized and available for grant as of January 30, 2010:
  

Options and nonvested stock:
Authorized 400 31,000 31,400
Available for grant 105 14,632 14,737
Options and nonvested stock that are surrendered or terminated without issuance of shares are available for future grants.
Stock options
The majority of stock options granted to employees prior to 2009 vest in four equal annual installments. Remaining stock options vest in five to seven
equal annual installments. Outside directors’ stock options are typically granted upon a director’s election or re-election to our Board of Directors and vest over
the term to which the director was elected, generally one year. Options granted to employees after 2005 have a term of seven years. Outstanding options granted
to employees prior to 2006 have a term of up to 15 years. Options granted to directors have a term of 10 years.
All stock options have an exercise price equal to the fair market value of the common stock on the date of grant. The fair value of each option award is
estimated using a Black-Scholes option valuation model and the following assumptions:
  
Dividend yield  0% 0%
Volatility  36.6% 30.4%
Risk-free interest rate   2.5% 4.7%
Expected life in years  5.3 5.2
Weighted average fair value at grant date  $15.52 $26.33
F-18