Macy's 2008 Annual Report Download - page 92

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
As of January 31, 2009, the Company had $90 million of unrecognized compensation costs related to
nonvested stock options, which is expected to be recognized over a weighted average period of approximately
1.6 years. As of January 31, 2009, the Company had $4 million of unrecognized compensation costs related to
nonvested restricted stock awards, which is expected to be recognized over a weighted average period of
approximately 1.3 years.
17. Shareholders’ Equity
The authorized shares of the Company consist of 125.0 million shares of preferred stock (“Preferred
Stock”), par value of $.01 per share, with no shares issued, and 1,000 million shares of Common Stock, par value
of $.01 per share, with 495.0 million shares of Common Stock issued and 420.1 million shares of Common Stock
outstanding at January 31, 2009, and 495.0 million shares of Common Stock issued and 419.7 million shares of
Common Stock outstanding at February 2, 2008 (with shares held in the Company’s treasury being treated as
issued, but not outstanding).
On May 19, 2006, the Company’s board of directors approved a two-for-one stock split to be effected in the
form of a stock dividend. The additional shares resulting from the stock split were distributed on June 9, 2006 to
shareholders of record on May 26, 2006.
The Company’s board of directors initially approved a $500 million authorization to purchase common
stock on January 27, 2000 and approved additional $500 million authorizations on each of August 25,
2000, May 18, 2001 and April 16, 2003, additional $750 million authorizations on each of February 27, 2004 and
July 20, 2004, an additional authorization of $2,000 million on August 25, 2006, and an additional $4,000 million
on February 26, 2007. All authorizations are cumulative and do not have an expiration date. The Company
repurchased no shares of Common Stock under its share repurchase program in 2008. Under its share repurchase
program, the Company purchased 85.3 million shares of Common Stock at a cost of approximately $3,322
million in 2007 and 62.4 million shares of Common Stock at a cost of approximately $2,500 million in 2006. As
of January 31, 2009, the Company’s share repurchase program had approximately $850 million of authorization
remaining. The Company’s share repurchase program is currently suspended.
In February 2007, the Company effected the immediate repurchase of 45 million outstanding shares for an
initial payment of approximately $2,000 million, subject to settlement provisions pursuant to the terms of the
related accelerated share repurchase agreements, which included derivative financial instruments indexed to
shares of Common Stock. Upon settlement of the accelerated share repurchase agreements in May and June of
2007, the Company received approximately 700,000 additional shares of Common Stock, resulting in a total of
approximately 45.7 million shares being repurchased.
During 2007, the Company retired 109 million shares of Common Stock.
Common Stock
The holders of the Common Stock are entitled to one vote for each share held of record on all matters
submitted to a vote of shareholders. Subject to preferential rights that may be applicable to any Preferred Stock,
holders of Common Stock are entitled to receive ratably such dividends as may be declared by the Board of
Directors in its discretion, out of funds legally available therefor.
Treasury Stock
Treasury stock contains shares repurchased under the share repurchase program, shares repurchased to cover
employee tax liabilities related to stock plan activity and shares maintained in a trust related to deferred
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