Kohl's 2012 Annual Report Download - page 57

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KOHL’S CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
F-18
7. Stock-Based Compensation (continued)
The intrinsic value of outstanding and exercisable stock options represents the excess of our closing stock price on
February 2, 2013 ($46.01) over the exercise price multiplied by the applicable number of stock options.
Nonvested stock awards
We have also awarded shares of nonvested common stock to eligible key employees and to our Board of Directors.
Substantially all awards have restriction periods tied primarily to employment and/or service. Nonvested stock awarded to
employees generally vests over five years. Beginning in 2011, we also grant performance-vested restricted shares to selected
members of senior management. Vesting of performance-vested shares is contingent upon achievement of certain performance
criteria, such as designated net income levels or sales levels that exceed those of a group of our peers. Upon the satisfaction of
the contingency, the performance-vested shares vest in accordance with a designated timetable, generally over a five-year
period from the date of grant. Director awards vest over the term to which the director was elected, generally one year. In lieu
of cash dividends, nonvested stock awards are granted restricted stock equivalents which vest consistently with the underlying
nonvested stock awards.
The fair value of nonvested stock awards is the closing price of our common stock on the date of grant. We may acquire
shares from employees in lieu of amounts required to satisfy minimum tax withholding requirements upon the vesting of the
employee’s unvested stock award. Such shares are then designated as treasury shares.
The following table summarizes nonvested stock activity, including restricted stock equivalents issued in lieu of cash
dividends, for 2012, 2011, and 2010:
2012 2011 2010
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 ............ 1,946 $ 51.11 1,116 $ 49.30 883 $ 45.44
Granted ............................................. 1,038 48.86 1,198 52.34 498 55.24
Vested................................................ (492) 49.77 (308) 49.28 (219) 47.52
Forfeited............................................ (169) 50.04 (60) 51.31 (46) 47.75
Balance at end of year....................... 2,323 $ 50.47 1,946 $ 51.11 1,116 $ 49.30
The aggregate fair value of awards at the time of vesting was $24 million in 2012, $16 million in 2011 and $12 million in
2011.
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 $50 million for 2012, $57 million for
2011 and $66 million for 2010. At February 2, 2013, we had approximately $152 million of unrecognized share-based
compensation expense (before forfeitures and capitalization), which is expected to be recognized over a weighted-average
period of 3.2 years.