Target 2013 Annual Report Download - page 60

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55
measures including domestic market share change, return on invested capital and EPS growth. The fair value of
performance share units is calculated based on the stock price on the date of grant. The weighted average grant date
fair value for performance share units was $57.22, $58.61 and $48.63 in 2013, 2012 and 2011, respectively.
Performance Share Unit Activity Total Nonvested Units
Performance
Share Units (a) Grant Date
Fair Value (b)
February 2, 2013 1,256 $ 51.53
Granted 2,036 57.22
Forfeited (145) 56.42
Vested (277) 51.49
February 1, 2014 2,870 $ 55.37
(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 February 1, 2014 was 1,515 thousand.
(b) Weighted average per unit.
The expense recognized each period is dependent upon our estimate of the number of shares that will ultimately be
issued. Future compensation expense for unvested awards could reach a maximum of $127 million assuming payout
of all unvested awards. The unrecognized expense is expected to be recognized over a weighted average period of
1.2 years. The fair value of performance share units vested and converted was $14 million in 2013, $16 million in 2012
and was not significant in 2011.
Restricted Stock
We issue restricted stock units and performance-based restricted stock units with three-year cliff vesting from the grant
date (collectively restricted stock) to certain team members. The final number of shares issued under performance-
based restricted stock units will be based on our total shareholder return relative to a retail peer group over a three-
year performance period. 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. The fair
value for restricted stock is calculated based on the stock price on the date of grant, incorporating an analysis of the
total shareholder return performance measure where applicable. The weighted average grant date fair value for
restricted stock was $62.76, $60.44 and $49.42 in 2013, 2012 and 2011, respectively.
Restricted Stock Activity Total Nonvested Units
Restricted
Stock (a) Grant Date
Fair Value (b)
February 2, 2013 2,895 $ 56.12
Granted 1,686 62.76
Forfeited (130) 57.19
Vested (516) 54.26
February 1, 2014 3,935 $ 58.98
(a) Represents the number of restricted stock units, in thousands. For performance-based restricted stock units, 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 restricted stock units at February 1, 2014 was 3,551 thousand.
(b) Weighted average per unit.
The expense recognized each period is partially dependent upon our estimate of the number of shares that will ultimately
be issued. At February 1, 2014, there was $139 million of total unrecognized compensation expense related to restricted
stock, which is expected to be recognized over a weighted average period of 1.3 years. The fair value of restricted
stock vested and converted to shares of Target common stock was $28 million, $11 million and $9 million in 2013,
2012 and 2011, respectively.