Lowe's 2014 Annual Report Download - page 64

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Transactions related to stock options for the year ended January 30, 2015 are summarized as follows:
Shares
(In thousands)
Weighted-
Average
Exercise Price
Per Share
Weighted-
Average
Remaining Term
(In years)
Aggregate
Intrinsic Value
(In thousands)
Outstanding at January 31, 2014 7,356
$ 29.42
Granted 1,507
53.13
Canceled, forfeited or expired (237 ) 34.35
Exercised (2,315 ) 26.45
Outstanding at January 30, 2015 6,311
$ 35.98
6.10 $ 200,560
Vested and expected to vest at
Januar
y
30
,
20151 6,207
$ 35.74
6.05 $ 198,725
Exercisable at January 30, 2015 2,949
$ 28.20
4.03 $ 116,669
1 Includes outstanding vested options as well as outstanding nonvested options after a forfeiture rate is applied.
Restricted Stock Awards
Restricted stock awards are valued at the market price of a share of the Company’s common stock on the date of grant. 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 awards granted was $53.13,
$41.78 and $28.25 in 2014, 2013, and 2012, respectively. The total fair value of restricted stock awards vested was
approximately $114 million, $98 million and $118 million in 2014, 2013 and 2012, respectively.
Transactions related to restricted stock awards for the year ended January 30, 2015 are summarized as follows:
Shares
(In thousands)
Weighted-
Average Grant-
Date Fair Value
Per Share
Nonvested at January 31, 2014 7,048
$ 32.74
Granted 1,290
53.13
Veste d (2,300 ) 26.04
Canceled or forfeited (464 ) 36.61
Nonvested at January 30, 2015 5,574
$ 39.91
Deferred Stock Units
Deferred stock units are valued at the market price of a share of the Company’s common stock on the date of grant. For non-
employee Directors, these awards vest immediately and are expensed on the grant date. During 2014, 2013 and 2012, each
non-employee Director was awarded a number of deferred stock units determined by dividing the annual award amount by the
fair market value of a share of the Company’s common stock on the award date and rounding up to the next 100 units. The
annual award amount used to determine the number of deferred stock units granted to each Director was $150,000 for both
2014 and 2013, and $140,000 for 2012. During 2014, 32,000 deferred stock units were granted and immediately vested for
non-employee Directors. The weighted-average grant-date fair value per share of deferred stock units granted was $47.08,
$42.11 and $26.36 in 2014, 2013 and 2012, respectively. The total fair value of deferred stock units vested was $1.5 million,
$1.5 million and $1 million in 2014, 2013, and 2012, respectively. During 2014, 0.1 million of fully vested deferred stock units
were released as a result of termination of service. At January 30, 2015, there were 0.5 million deferred stock units
outstanding, all of which were vested.
54
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