Sears 2013 Annual Report Download - page 95

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
95
NOTE 8—EARNINGS PER SHARE
The following tables set forth the components used to calculate basic and diluted loss per share from
continuing operations attributable to Holdings' shareholders. Restricted stock awards for 2013 and 2012 were not
included in the computation of diluted loss per share from continuing operations attributable to Holdings'
shareholders because the effect of their inclusion would have been antidilutive.
millions, except earnings per share 2013 2012 2011
Basic weighted average shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.1 105.9 106.8
Dilutive effect of restricted stock and stock options . . . . . . . . . . . . . . . . . . . . — — —
Diluted weighted average shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.1 105.9 106.8
Net loss from continuing operations attributable to Holdings' shareholders. . $(1,365) $ (930) $ (3,113)
Loss per share from continuing operations attributable to Holdings'
shareholders:
Basic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(12.87) $ (8.78) $ (29.15)
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(12.87) $ (8.78) $ (29.15)
NOTE 9—EQUITY
Stock-based Compensation
We account for stock-based compensation using the fair value method in accordance with accounting
standards regarding share-based payment transactions. We recorded $12 million, $15 million and $14 million in total
compensation expense relative to stock-based compensation arrangements during 2013, 2012, and 2011,
respectively. At February 1, 2014, we had $3 million in total compensation cost related to nonvested awards, which
is expected to be recognized over approximately the next three years.
We do not currently have an employee stock option plan and at February 1, 2014, there are no outstanding
options.
We granted restricted stock awards to certain associates. These restricted stock awards typically vest in zero to
three years from the date of grant, provided the grantee remains employed by us at the vesting date. The fair value of
these awards is equal to the market price of our common stock on the date of grant. We do not currently have a
broad-based program that provides for restricted stock awards on an annual basis. Changes in restricted stock awards
for 2013, 2012, and 2011 were as follows:
2013 2012 2011
(Shares in thousands) Shares
Weighted-
Average
Fair Value
on Date
of Grant Shares
Weighted-
Average
Fair Value
on Date
of Grant Shares
Weighted-
Average
Fair Value
on Date
of Grant
Beginning of year balance. . . . . . . . . . . 424 $ 57.72 496 $ 65.02 313 $ 74.09
Granted . . . . . . . . . . . . . . . . . . . . . . . . . 135 49.19 175 49.20 386 59.60
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . (281) 57.71 (172) 60.89 (72) 81.55
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . (73) 68.47 (75) 78.59 (131) 61.62
End of year balance . . . . . . . . . . . . 205 $ 48.24 424 $ 57.72 496 $ 65.02