Kohl's 2011 Annual Report Download - page 67

KOHL’S CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
7. Stock-Based Compensation (continued)
The intrinsic value of options exercised represents the excess of our stock price at the time the option was
exercised over the exercise price and was $16 million in 2011, $25 million in 2010 and $20 million in 2009.
Additional information related to stock options outstanding and exercisable at January 28, 2012, segregated
by exercise price range, is summarized below:
Stock Options Outstanding Stock Options Exercisable
Range of Exercise Prices Shares
Weighted
Average
Remaining
Contractual
Life (in
years)
Weighted
Average
Exercise
Price Shares
Weighted
Average
Remaining
Contractual
Life (in
years)
Weighted
Average
Exercise
Price
(Shares in Thousands)
$ 17.00 – $ 35.50 .................. 1,450 2.6 $29.54 1,264 2.4 $29.73
$ 35.51 – $ 38.30 .................. 124 3.7 37.35 72 3.6 37.42
$ 38.31 – $ 41.63 .................. 1,853 4.2 41.58 647 4.3 41.49
$ 41.64 – $ 45.57 .................. 1,476 3.6 43.06 1,038 3.8 43.06
$ 45.58 – $ 50.37 .................. 2,180 6.6 48.25 1,836 6.9 48.18
$ 50.38 – $ 51.81 .................. 2,153 3.1 51.35 2,072 3.0 51.37
$ 51.82 – $ 66.25 .................. 3,650 4.8 57.65 2,175 4.1 59.88
$ 66.26 – $ 75.90 .................. 1,239 4.1 68.70 1,219 4.1 68.64
$ 75.91 – $ 77.62 .................. 2,439 2.2 75.98 2,438 2.2 75.98
16,564 4.0 $53.41 12,761 3.8 $55.32
Intrinsic value (in thousands) ............. $41,246 $29,573
The intrinsic value of outstanding and exercisable stock options represents the excess of our closing stock
price on January 28, 2012 ($46.69) over the exercise price multiplied by the applicable number of stock options.
Nonvested stock awards
We have also awarded shares of nonvested common stock to eligible key employees and to our Board of
Directors. Substantially all awards have restriction periods tied primarily to employment and/or service.
Nonvested stock awarded to employees generally vests over five years. Beginning in 2011, we also grant
performance-vested restricted shares to selected members of senior management. Vesting of performance-vested
shares is contingent upon achievement of certain performance criteria, such as designated net income levels or
sales levels that exceed those of a group of our peers. Upon the satisfaction of the contingency, the performance-
vested shares vest in accordance with a designated timetable, generally over a five-year period from the date of
grant. Beginning in 2010, nonvested stock was awarded upon a director’s election or re-election to our Board of
Directors. Director awards vest over the term to which the director was elected, generally one year. In lieu of
cash dividends, nonvested stock awards are granted restricted stock equivalents which vest consistently with the
underlying nonvested stock awards.
The fair value of nonvested stock awards is the closing price of our common stock on the date of grant. We
may acquire shares from employees in lieu of amounts required to satisfy minimum tax withholding
requirements upon the vesting of the employee’s unvested stock award. Such shares are then designated as
treasury shares.
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