Fiscal Years Ended January 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Restricted stock and performance share awards | $ | 152 | $ | 142 | $ | 162 | ||||||
Restricted stock rights | 195 | 184 | 157 | |||||||||
Stock options | 31 | 29 | 52 | |||||||||
Share-based compensation expense | $ | 378 | $ | 355 | $ | 371 |
• | Restricted Stock and Performance Share Awards. Restricted stock awards are for shares that vest based on the passage of time and include restrictions related to employment. Performance share awards vest based on the passage of time and achievement of performance criteria and may range from 0% to 150% of the original award amount. Vesting periods for these awards are generally between three and five years. Restricted stock and performance share awards may be settled or deferred in stock and are accounted for as equity in the Company's Consolidated Balance Sheets. The fair value of restricted stock awards is determined on the date of grant and is expensed ratably over the vesting period. The fair value of performance share awards is determined on the date of grant using the Company's stock price discounted for the expected dividend yield through the vesting period and is recognized over the vesting period. |
• | Restricted Stock Rights. Restricted stock rights provide rights to Company stock after a specified service period; 50% vest three years from the grant date and the remaining 50% vest five 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 fiscal 2013, 2012 and 2011 was 12.2%, 11.7% and 9.1%, respectively. |
• | Stock Options. Stock options allow the associate to buy a specified number of shares at a set price. Options granted generally vest over five years and have a contractual term of ten years. Options may include restrictions related to employment, satisfaction of performance conditions 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. |
• | 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. |
Restricted Stock and Performance Share Awards | Restricted Stock Rights | Stock Options(1) | |||||||||||||||||||
(Shares in thousands) | Shares | Weighted- Average Grant-Date Fair Value Per Share | Shares | Weighted- Average Grant-Date Fair Value Per Share | Shares | Weighted- Average Exercise Price 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. |
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 |
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 |
Fiscal Years Ended January 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Dividend yield(1) | 2.8 | % | 2.9 | % | 2.3 | % | ||||||
Volatility(2) | 16.2 | % | 17.6 | % | 17.1 | % | ||||||
Risk-free interest rate(3) | 0.6 | % | 1.3 | % | 1.8 | % | ||||||
Expected life in years(4) | 3.0 | 3.0 | 3.1 | |||||||||
Weighted-average fair value of options granted | $ | 10.57 | $ | 9.61 | $ | 12.53 |
(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. |
Share Repurchases | Total Number of Shares Repurchased (in millions) | Average Price Paid per Share (in dollars) | Total Investment (in billions) | ||||||||
Fiscal year ended January 31, 2013 | 113.2 | $ | 67.15 | $ | 7.6 | ||||||
Fiscal year ended January 31, 2012 | 115.3 | 54.64 | 6.3 | ||||||||
Fiscal year ended January 31, 2011 | 279.1 | 53.03 | 14.8 |