Lowe's 2014 Annual Report Download - page 66

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Transactions related to performance share units classified as liability awards for the year ended January 30, 2015 are
summarized as follows:
Units
(In thousands)1
Weighted-
Average Grant-
Date Fair Value
Per Unit
Nonvested at January 31, 2014 493
$ 28.85
Granted
—
—
Canceled or forfeited (193 ) 25.18
Nonvested at January 30, 2015 300
$ 31.20
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 30, 2015, the maximum number of units that could vest under the provisions of the agreements
were 0.5 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 $50.48, $41.53 and
$27.84 in 2014, 2013 and 2012, respectively. The total fair value of restricted stock units vesting was approximately $1.6
million and $3.4 million in 2014 and 2013, respectively. An insignificant amount of restricted stock units vested in 2012.
Transactions related to restricted stock units 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 228
$ 35.99
Granted 120
50.48
Veste d (33 ) 24.17
Canceled or forfeited (30 ) 40.20
Nonvested at January 30, 2015 285
$ 43.00
ESPP
The purchase price of the shares under the ESPP equals 85% of the closing price on the date of purchase. The Company’s
share-based payment expense per share is equal to 15% of the closing price on the date of purchase. The ESPP is considered a
liability award and is measured at fair value at each reporting date, and the share-based payment expense is recognized over the
six-month offering period. During 2014, the Company issued 1.6 million shares of common stock and recognized $13 million
of share-based payment expense pursuant to the plan.
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