Macy's 2013 Annual Report Download - page 83

Table of Contents
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 
During 2009, the Company obtained shareholder approval for the Macy’s 2009 Omnibus Incentive Compensation Plan under which up to 51 million
shares of Common Stock may be issued. This plan is intended to help the Company attract and retain directors, officers, other key executives and employees
and is also intended to provide incentives and rewards relating to the Company’s business plans to encourage such persons to devote themselves to the
business of the Company. Prior to 2009, the Company had two equity plans; the Macy's 1995 Executive Equity Incentive Plan and the Macy's 1994 Stock
Incentive Plan. After shareholders approved the 2009 Omnibus Incentive Compensation Plan, Common Stock may no longer be granted under the Macy's
1995 Executive Equity Incentive Plan or the Macy's 1994 Stock Incentive Plan. The following disclosures present the Company’s equity plans on a
combined basis. The equity plan is administered by the Compensation and Management Development Committee of the Board of Directors (the “CMD
Committee”). The CMD Committee is authorized to grant options, stock appreciation rights, restricted stock and restricted stock units to officers and key
employees of the Company and its subsidiaries and to non-employee directors. There have been no grants of stock appreciation rights under the equity plans.
Stock option grants have an exercise price at least equal to the market value of the underlying common stock on the date of grant, have ten-year terms
and typically vest ratably over four years of continued employment. Restricted stock and time-based restricted stock unit awards generally vest one to four
years from the date of grant. Performance-based restricted stock units generally are earned based on the attainment of specified goals achieved over the
performance period.
As of February 1, 2014, 27.5 million shares of common stock were available for additional grants pursuant to the Company’s equity plan. Shares
awarded are generally issued from the Company's treasury stock.
Stock-based compensation expense included the following components:




Stock options $ 36
$ 28
$ 28
Restricted stock units 25
26
20
Restricted stock 1
1
2
Stock credits —
6
20
$62
$61
$70
All stock-based compensation expense is recorded in SG&A expense in the Consolidated Statements of Income. The income tax benefit recognized in the
Consolidated Statements of Income related to stock-based compensation was $22 million, $22 million, and $25 million, for 2013, 2012 and 2011,
respectively.
As of February 1, 2014, the Company had $53 million of unrecognized compensation costs related to nonvested stock options, which is expected to be
recognized over a weighted average period of approximately 1.7 years, less than $1 million of unrecognized compensation costs related to nonvested restricted
stock, which is expected to be recognized over a weighted average period of approximately 1.1 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 1.4 years.
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