Macy's 2011 Annual Report Download - page 78

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-38
Activity related to restricted stock units for 2011 is as follows:
Shares
Weighted
Average
Grant Date
Fair Value
Nonvested, beginning of period ...................................................................................... 3,788,634 $ 8.57
Granted – performance-based.......................................................................................... 715,100 23.43
Performance adjustment.................................................................................................. 476,922 22.72
Granted – time-based....................................................................................................... 37,719 28.63
Dividend equivalents....................................................................................................... 116,422 23.04
Forfeited .......................................................................................................................... (288,071) 10.29
Vested.............................................................................................................................. (40,401) 22.54
Nonvested, end of period................................................................................................. 4,806,325 $ 12.47
There have been no grants of stock appreciation rights under the equity plans.
As of January 28, 2012, the Company had $39 million of unrecognized compensation costs related to nonvested stock
options, which is expected to be recognized over a weighted average period of approximately 1.8 years, $2 million of
unrecognized compensation costs related to nonvested restricted stock, which is expected to be recognized over a weighted
average period of approximately 1.6 years, and $26 million of unrecognized compensation costs related to nonvested restricted
stock units, which is expected to be recognized over a weighted average period of approximately 1.3 years.
13. Shareholders’ Equity
The authorized shares of the Company consist of 125 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 487.3
million shares of Common Stock issued and 414.2 million shares of Common Stock outstanding at January 28, 2012, and with
495.0 million shares of Common Stock issued and 423.3 million shares of Common Stock outstanding at January 29, 2011
(with shares held in the Company’s treasury being treated as issued, but not outstanding).
During 2011, the Company retired 7.7 million shares of Common Stock.
The Company's board of directors approved an additional $1,000 million in authorization to purchase Common Stock on
January 5, 2012. Combined with previous authorizations commencing in January 2000, the Company’s board of directors has
from time to time approved authorizations to purchase, in the aggregate, up to $10,500 million of Common Stock. All
authorizations are cumulative and do not have an expiration date. During 2011, the Company purchased approximately
16,356,500 shares of Common Stock under its share repurchase program for a total of approximately $500 million. As of
January 28, 2012, approximately $1,352 million of authorization remained unused. The Company may continue or, from time
to time, suspend repurchases of its shares under its share repurchase program, depending on prevailing market conditions,
alternative uses of capital and other factors.
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 compensation plans. Under the
deferred compensation plans, shares are maintained in a trust to cover the number estimated to be needed for distribution on
account of stock credits currently outstanding.