Walmart 2013 Annual Report Download - page 43

Walmart 2013 Annual Report || 41
• Restricted Stock Rights. Restricted stock rights provide rights to
Company stock after a speci ed service period; 50% vest three years
from the grant date and the remaining 50% vest  ve years from the
grant date. The fair value of each restricted stock right is determined on
the date of grant using the stock price discounted for the expected
dividend yield through the vesting period and is recognized ratably
over the vesting period. The expected dividend yield is based on the
anticipated dividends over the vesting period. The weighted-average
discount for the dividend yield used to determine the fair value of
restricted stock rights granted in  scal 2013, 2012 and 2011 was 12.2%,
11.7% and 9.1%, respectively.
• Stock Options. Stock options allow the associate to buy a speci ed
number of shares at a set price. Options granted generally vest over
 ve years and have a contractual term of ten years. Options may include
restrictions related to employment, satisfaction of performance condi-
tions or other conditions. Under the Plan and prior plans, substantially
all stock options have been granted with an exercise price equal to the
market price of the Company’s stock at the date of grant.
In addition to the Plan, the Company’s subsidiary in the United Kingdom,
ASDA, has two other stock option plans for certain ASDA colleagues.
A combined 49 million shares of the Company’s common stock were
registered under the Securities Act of 1933, as amended, for issuance
upon the exercise of stock options granted under the Colleague Share
Ownership Plan 1999 (the “CSOP”) and the ASDA Sharesave Plan 2000
(“Sharesave Plan”).
• CSOP. The CSOP grants have either a three- or six-year vesting
period. The CSOP options may be exercised during the two months
immediately following the vesting date.
• Sharesave Plan. The Sharesave Plan grants options at 80% of the
Company’s average stock price for the three days preceding the grant
date. The Sharesave Plan options vest after three years and may
generally be exercised up to six months after the vesting date.
Notes to Consolidated Financial Statements
The following table shows the activity for each award type during  scal 2013:
Restricted Stock and
Performance Share Awards Restricted Stock Rights Stock Options
(1)
Weighted-Average Weighted-Average
Grant-Date Grant-Date Weighted-Average
Fair Value Fair Value Exercise Price
(Shares in thousands) Shares Per Share Shares Per Share Shares Per Share
Outstanding at February 1, 2012 13,320 $ 53.56 17,621 $ 47.76 20,152 $ 48.21
Granted 4,488 62.13 5,262 53.27 2,082 47.39
Vested/exercised (2,982) 50.95 (3,714) 45.35 (10,701) 48.12
Forfeited or expired (2,228) 52.73 (1,330) 48.37 (1,293) 52.56
Outstanding at January 31, 2013 12,598 $57.37 17,839 $49.79 10,240 $47.58
Exercisable at January 31, 2013 5,326 $50.00
(1) Includes stock option awards granted under the Plan, the CSOP and the Sharesave Plan.
As of January 31, 2013, the unrecognized compensation cost for
restricted stock and performance share awards, restricted stock rights
and stock option awards was $233 million, $437 million and $21 million,
respectively, and is expected to be recognized over a weighted-average
period of 2.0 years, 1.7 years and 2.8 years, respectively. Additionally, as of
January 31, 2013, the weighted-average remaining life for stock options
outstanding and stock options exercisable was 5.3 years and 2.7 years,
respectively, and had an aggregate intrinsic value of $229 million and
$106 million, respectively.
The following table includes additional information related to restricted
stock and performance share awards and restricted stock rights:
Fiscal Years Ended January 31,
(Amounts in millions) 2013 2012 2011
Fair value of restricted stock and
performance share awards vested $155 $134 $142
Fair value of restricted stock rights vested 168 178 50
The following table includes additional information related to stock
option awards:
Fiscal Years Ended January 31,
(Amounts in millions) 2013 2012 2011
Fair value of stock options vested $ 33 $ 50 $ 54
Proceeds from stock options exercised 320 420 205
Intrinsic value of stock options exercised 207 91 51