Annual report pursuant to Section 13 and 15(d)

SHARE-BASED COMPENSATION (Tables)

v3.20.1
SHARE-BASED COMPENSATION (Tables)
12 Months Ended
Feb. 01, 2020
Schedule of Assumptions Used to Estimate the Fair Value of Options

The fair value of each stock option is estimated using the Black-Scholes option pricing model. The following table presents the weighted-average assumptions used during fiscal years 2019, 2018 and 2017:

Fiscal Year

    

2019

    

2018

    

2017

    

Risk-free interest rates (1)

 

1.9

%

2.5

%

1.7

%

Expected dividend yield

0.0

%

0.0

%

0.0

%

Expected volatility (2)

 

37.9

%

32.8

%

29.9

%

Expected life of options in years (3)

 

4.3

4.1

4.1

(1) Based on interest rates for U.S. Treasury instruments with terms consistent with the expected lives of the awards.
(2) We considered our historical and implied volatility as well as the implied volatilities for exchange-traded options of a peer group of companies.
(3) Expected lives were based on an analysis of historical exercises and post-vesting employment termination.
Summary of Stock Option Activity

The stock option activity during the fiscal year ended February 1, 2020 was as follows:

    

    

    

Weighted-

    

Average

Remaining

Aggregate

Number of

Weighted-

Contractual

Intrinsic

Shares

Average Exercise

Term

Value

(in thousands)

Price

(in years)

(in thousands)

Outstanding at beginning of year

8,544

$

19.73

Granted

3,109

10.37

Exercised

(65)

7.83

Expired/Forfeited

(4,016)

19.10

Outstanding at end of year

7,572

$

16.32

 

7.0

$

Shares exercisable at end of year

3,602

$

19.58

 

4.9

$

Restricted Stock Units [Member]  
Schedule of Nonvested Restricted Stock Unit Activity

Restricted stock unit activity during the fiscal year ended February 1, 2020 was as follows:

    

Number of Shares (1)
(in thousands)

    

Weighted-Average Fair Value

Outstanding at beginning of year

3,298

$

19.53

Granted

 

3,578

 

10.09

Vested

 

(662)

 

20.86

Forfeited

 

(1,551)

 

16.66

Outstanding at end of year

4,663

$

13.05

(1) Includes 1.1 million of awards with vesting subject to performance conditions outstanding at the beginning of the year, 0.7 million forfeited during the year and 0.4 million outstanding at the end of the year, with a weighted average fair value of $17.38 per share, respectively.
Restricted Shares [Member]  
Schedule of Restricted Share Activity

Restricted stock award activity during the fiscal year ended February 1, 2020 was as follows:

    

Number of Shares
(in thousands)

    

Weighted-Average Fair Value

Outstanding at beginning of year

172

$

24.60

Granted

 

162

 

9.44

Vested

 

(160)

21.26

Forfeited

 

(31)

24.77

Outstanding at end of year

143

$

11.11