Target 2010 Annual Report Download - page 78

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performance share units is calculated based on the stock price at the time of grant. The weighted average grant
date fair value for performance share units was $52.62 in 2010, $27.18 in 2009 and $51.68 in 2008.
Performance Share Unit Activity Total Nonvested Units
Performance Grant Date
Share Units (a) Price (b)
January 30, 2010 2,199 $44.96
Granted 442 52.62
Forfeited (657) 58.80
Vested ——
January 29, 2011 1,984 (c) $42.10
(a) Assumes attainment of maximum payout rates as set forth in the performance criteria based in thousands of share units. Applying actual or
expected payout rates, the number of outstanding units at January 29, 2011 was 1,046.
(b) Weighted average per unit.
(c) Because the performance criteria were not met, approximately 728 thousand of these performance share units outstanding at January 29,
2011 were not earned and will be forfeited in the first quarter of 2011.
Compensation expense associated with unvested performance share units is recognized on a straight-line
basis over the shorter of the vesting period or the minimum required service period. The expense recognized each
period is dependent upon our estimate of the number of shares that will ultimately be issued. Future compensation
expense for currently unvested awards could reach a maximum of $16 million assuming payout of all unvested
awards. The unrecognized expense is expected to be recognized over a weighted average period of 0.8 years. The
fair value of performance share units vested and converted was $0 in 2010, $1 million in 2009, and $36 million in
2008.
Restricted Stock
We issue restricted stock units and restricted stock awards (collectively restricted stock) to certain team
members with three-year cliff vesting from the date of grant. We also regularly issue restricted stock units to our
Board of Directors, which vest quarterly over a one-year period and are settled in shares of Target common stock
upon departure from the Board. Restricted stock units represent shares potentially issuable in the future whereas
restricted stock awards represent shares issued upon grant that are restricted. The fair value for restricted stock
units and restricted stock awards is calculated based on the stock price at the time of grant. The weighted average
grant date fair value for restricted stock was $55.17 in 2010, $49.41 in 2009 and $34.64 in 2008.
Restricted Stock Activity Total Nonvested Units
Restricted Grant Date
Stock (a) Price (b)
January 30, 2010 767 $33.47
Granted 578 55.17
Forfeited ——
Vested (207) 11.91
January 29, 2011 1,138 $48.29
(a) Represents the number of restricted stock units and restricted stock awards, in thousands.
(b) Weighted average per unit.
Compensation expense associated with unvested restricted stock is recognized on a straight-line basis over
the shorter of the vesting period or the minimum required service period. The expense recognized each period is
dependent upon our estimate of the number of shares that will ultimately be issued. At January 29, 2011, there was
$33 million of total unrecognized compensation expense related to restricted stock, which is expected to be
recognized over a weighted average period of 1.2 years. The fair value of restricted stock vested and converted was
$3 million in 2010, $12 million in 2009, and $3 million in 2008.
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