Sears 2015 Annual Report Download - page 86

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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 do not currently have an employee stock option plan and
at January€30, 2016, there are no outstanding options. Compensation expense related to stock-based compensation
arrangements was immaterial during 2015, 2014 and 2013.
We granted restricted stock awards and restricted stock units to certain associates. These restricted stock
awards and restricted stock units 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 and units 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 or restricted stock units on an annual basis. Changes in restricted stock awards and restricted stock
units for 2015, 2014 and 2013 were as follows:
2015 2014 2013
(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. . . . . . . . . . . . . . 73 $45.82 205 $48.24 424 $57.72
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 31.26 168 38.35 135 49.19
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (200)32.01 (248)41.17 (281)57.71
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . (11)51.39 (52)53.44 (73)68.47
End of year balance . . . . . . . . . . . . . . . 60 $42.88 73 $45.82 205 $48.24
millions 2015 2014 2013
Aggregate fair value of shares granted based on weighted average fair value at date of
grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6$6$7
Aggregate fair value of shares vesting during period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 9 14
Aggregate fair value of shares forfeited during period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —24
Approximately 27,000 shares of the 60,000 shares of unvested restricted stock and restricted stock units
outstanding at January€30, 2016 are scheduled to vest during 2016, subject to satisfaction of applicable vesting
conditions.
Common Share Repurchase Program
From time to time, we repurchase shares of our common stock under a common share repurchase program
authorized by our Board of Directors. The common share repurchase program was initially announced in 2005 with
a total authorization since inception of the program of $6.5 billion. During 2015, 2014 and 2013, we repurchased no
shares of our common stock under our common share repurchase program. At January€30, 2016, we had
approximately $504 million of remaining authorization under our common share repurchase program.
The share repurchase program has no stated expiration date and share repurchases may be implemented using a
variety of methods, which may include open market purchases, privately negotiated transactions, block trades,
accelerated share repurchase transactions, the purchase of call options, the sale of put options or otherwise, or by any
combination of such methods.
SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
86