Walmart 2014 Annual Report Download - page 47

The following table shows the activity for each award type during scal 2014:
Restricted Stock and
Performance Share Awards
(2)
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, 2013 12,598 $57.37 17,839 $49.79 10,240 $47.58
Granted 3,688 76.05 5,095 77.75 1,846 56.63
Vested/exercised (2,445) 55.31 (3,998) 55.33 (3,421) 48.88
Forfeited or expired (3,890) 61.32 (1,151) 60.38 (415) 59.43
Outstanding at January 31, 2014 9,951 $63.26 17,785 $55.87 8,250 $48.47
Exercisable at January 31, 2014 3,119 $48.45
(1) Includes stock option awards granted under the Plan, the CSOP and the Sharesave Plan.
(2) Assumes payout rate at 100% for Performance Share Awards.
As of January 31, 2014, the unrecognized compensation cost for
restricted stock and performance share awards, restricted stock rights
and stock option awards was $200 million, $497 million and $26 million,
respectively, and is expected to be recognized over a weighted-average
period of 2.0 years, 2.1 years and 2.8 years, respectively. Additionally, as
of January 31, 2014, the weighted-average remaining life for stock options
outstanding and stock options exercisable was 5.8 years and 2.2 years,
respectively, and had an aggregate intrinsic value of $209 million and
$82 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) 2014 2013 2012
Fair value of restricted stock and
performance share awards vested $116 $155 $134
Fair value of restricted stock rights vested 189 168 178
The following table includes additional information related to stock
option awards:
Fiscal Years Ended January 31,
(Amounts in millions) 2014 2013 2012
Fair value of stock options vested $ 16 $ 33 $ 50
Proceeds from stock options exercised 108 320 420
Intrinsic value of stock options exercised 99 207 91
The fair value of each stock option award is estimated on the date of
grant using the Black-Scholes-Merton option valuation model that uses
various assumptions for inputs. The Company uses expected volatilities
and risk-free interest rates that correlate with the expected term of the
option when estimating an option’s fair value. The following table provides
the weighted-average assumptions used to estimate the fair values of
the Company’s stock options granted in scal 2014, 2013 and 2012:
Fiscal Years Ended January 31,
2014 2013 2012
Dividend yield
(1)
2.5% 2.8% 2.9%
Volatility
(2)
15.2% 16.2% 17.6%
Risk-free interest rate
(3)
0.4% 0.6% 1.3%
Expected life in years
(4)
3.3 3.0 3.0
Weighted-average fair value
of options granted $15.27 $10.57 $9.61
(1) Expected dividend yield is based on the anticipated dividends over the vesting period.
(2) Expected volatility is based on historical volatility of the Company’s stock.
(3) Risk-free interest rate is based on the U.S. Treasury yield curve at the time of the grant.
(4) Expected life in years is based on historical exercise and expiration activity of grants
with similar vesting periods.
Walmart 2014 Annual Report 45
Notes to Consolidated Financial Statements