Lowe's 2015 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2015 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 89

  • 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
  • 86
  • 87
  • 88
  • 89

54
Transactions related to performance share units classified as equity awards for the year ended January 29, 2016 are summarized
as follows:
Units
(In thousands)1
Weighted-
Average Grant-
Date Fair Value
Per Unit
Nonvested at January 30, 2015
957
$
37.00
Granted
257
71.52
Vested
(327
)
26.66
Canceled or forfeited
(95
)
49.77
Nonvested at January 29, 2016
792
$
50.93
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 29, 2016, the maximum number of nonvested units that could vest under the provisions of the
agreements was 1.2 million for the RONCAA awards.
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. No
performance share units classified as liability awards were granted in 2015 or 2014. The weighted-average grant-date fair
value per unit of performance share units classified as liability awards granted in 2013 was $36.48. No performance share units
vested in 2015, 2014, or 2013. The total liability for performance share units classified as liability awards at January 29, 2016
was $13 million.
Transactions related to performance share units classified as liability awards for the year ended January 29, 2016 are
summarized as follows:
Units
(In thousands)1
Weighted-
Average Grant-
Date Fair Value
Per Unit
Nonvested at January 30, 2015
300
$
31.20
Canceled or forfeited
(173
)
27.36
Nonvested at January 29, 2016
127
$
36.47
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 29, 2016, the maximum number of nonvested units that could vest under the provisions of the
agreements was 0.2 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 $66.24, $50.48 and
$41.53 in 2015, 2014 and 2013, respectively. The total fair value of restricted stock units vesting was approximately $3.5
million, $1.6 million, and $3.4 million in 2015, 2014 and 2013, respectively.