Kohl's 2014 Annual Report Download - page 56
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Please find page 56 of the 2014 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.-
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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. 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:
Balance at beginning of year
2,323
$ 50.47
1,946
$ 51.11
Granted
1,189
49.22
1,038
48.86
Vested
(706)
48.00
(492)
49.77
Forfeited
(153)
50.48
(169)
50.04
Balance at end of year
2,653
$ 50.56
2,323
$ 50.47
The aggregate fair value of awards at the time of vesting was $41 million in 2014, $34 million in 2013 and $24 million in 2012.
Performance share units
In March 2014, we granted performance-based restricted stock units ("performance share units") to certain executives. The performance measurement
period for these performance share units is fiscal years 2014 through 2016. The fair market value of the grant was $62.39 per unit and was determined using a
Monte-Carlo valuation on the date of grant. The performance share units cover a target of 18,000 shares.
In January 2014, we granted performance share units to certain executives. The performance measurement period for these performance share units is
fiscal years 2014 through 2016. The fair market value of the grant was $57.37 per unit and was determined using a Monte-Carlo valuation on the date of
grant. The performance share units cover a target of 230,000 shares.
The actual number of shares which will be earned at the end of the three-year vesting periods will vary based on our cumulative financial performance
over the vesting periods. The number of performance share units earned will be modified up or down based on Kohl’s Relative Total Shareholder Return
against a defined peer group during the vesting periods. The payouts, if earned, will be settled in Kohl's common stock after the end of each multi-year
performance periods.
Other required disclosures
Stock-based compensation expense is included in Selling, General and Administrative expense in our Consolidated Statements of Income. Such
expense totaled $48 million for 2014, $55 million for 2013 and $50 million for 2012. At January 31, 2015, we had approximately $92 million of
unrecognized share-based compensation expense, which is expected to be recognized over a weighted-average period of 2 years.
F-17