Lowe's 2013 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2013 Lowe'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 85

  • 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
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85

52
Units
(In thousands)1
Weighted-Average
Grant-Date Fair
Value Per Unit
Nonvested at February 1, 2013
730
$
25.42
Granted
327
36.48
Canceled or forfeited
(56
)
28.82
Nonvested at January 31, 2014
1,001
$
28.85
Brand Differentiation Awards
Performance share units issued based on targeted Company improvement in brand differentiation, which is not considered a
market, performance, or service related condition, are classified as liability awards and are measured at fair value at each
reporting date. The awards are valued at the market price of a share of the Company’s common stock at the end of each
reporting period less the present value of dividends expected to be issued during the remaining requisite service period. The
weighted-average grant-date fair value per unit of performance share units classified as liability awards granted was $36.48,
$26.60 and $25.45 in 2013, 2012 and 2011, respectively. No performance share units vested in 2013, 2012 or 2011. The total
liability for performance share units classified as liability awards at January 31, 2014 was $2 million.
Transactions related to performance share units classified as liability awards for the year ended January 31, 2014 are
summarized as follows:
Units
(In thousands)1
Weighted-Average
Grant-Date Fair
Value Per Unit
Nonvested at February 1, 2013
359
$
25.42
Granted
159
36.48
Canceled or forfeited
(25
)
28.05
Nonvested at January 31, 2014
493
$
28.85
¹ The number of units presented is based on achieving the targeted performance goals as defined in the performance share unit
agreements. As of January 31, 2014, the maximum number of units that could vest under the provisions of the agreements
were 1.5 million for the RONCAA awards and 0.7 million units for the brand differentiation awards.
Restricted Stock Units
Restricted stock units do not have dividend rights and are valued at the market price of a share of the Company’s common
stock on the date of grant less the present value of dividends expected during the requisite service period. In general, these
awards vest at the end of a three year period from the date of grant and are expensed on a straight-line basis over that period,
which is considered to be the requisite service period. The Company uses historical data to estimate the timing and amount of
forfeitures. The weighted-average grant-date fair value per share of restricted stock units granted was $41.53, $27.84 and
$23.97 in 2013, 2012 and 2011, respectively. The total fair value of restricted stock units vesting was approximately $3.4
million in 2013. An insignificant amount of restricted stock units vested in 2012 and 2011.
Transactions related to restricted stock units for the year ended January 31, 2014 are summarized as follows:
Shares
(In thousands)
Weighted-Average
Grant-Date Fair
Value Per Share
Nonvested at February 1, 2013
206
$
25.40
Granted
160
41.53
Vested
(84
)
24.32
Canceled or forfeited
(54
)
30.15
Nonvested at January 31, 2014
228
$
35.99