Stock-Based Compensation

6 Months Ended

Jul. 30, 2022

Stock-Based Compensation.

Stock-Based Compensation

NOTE 15—STOCK-BASED COMPENSATION

We recorded stock-based compensation expense of $11 million and $10 million during the three months ended July 30, 2022 and July 31, 2021, respectively, which is included in selling, general and administrative expenses on the condensed consolidated statements of income. We recorded stock-based compensation expense of $24 million and $25 million during the six months ended July 30, 2022 and July 31, 2021, respectively. No stock-based compensation cost has been capitalized in the accompanying condensed consolidated financial statements.

2012 Stock Incentive Plan and 2012 Stock Option Plan

Information about stock options outstanding, vested or expected to vest, and exercisable as of July 30, 2022 is as follows:

	OPTIONS OUTSTANDING				OPTIONS EXERCISABLE
		WEIGHTED-
		AVERAGE	WEIGHTED-			WEIGHTED-
		REMAINING	AVERAGE			AVERAGE
	NUMBER OF	CONTRACTUAL	EXERCISE		NUMBER OF	EXERCISE
RANGE OF EXERCISE PRICES	OPTIONS	LIFE (IN YEARS)	PRICE		OPTIONS	PRICE
$25.39 — $45.82	289,155	3.80	$	35.70	287,915	$	35.66
$50.00 — $50.00	1,000,000	4.76		50.00	1,000,000		50.00
$53.47 — $61.30	198,830	1.82		61.18	198,830		61.18
$75.43 — $75.43	1,000,000	0.92		75.43	1,000,000		75.43
$87.31 — $154.82	826,857	7.04		133.17	234,112		123.63
$156.40 — $380.53	293,380	7.95		286.72	46,315		250.09
$385.30 — $716.75	838,640	8.32		421.68	707,415		387.00
Total	4,446,862		$	156.47	3,474,587	$	133.01
Vested or expected to vest	4,223,061		$	151.42

The aggregate intrinsic value of options outstanding, options vested or expected to vest, and options exercisable as of July 30, 2022 was $676 million, $656 million, and $586 million, respectively. Stock options exercisable as of July 30, 2022 had a weighted-average remaining contractual life of 4.26 years. As of July 30, 2022, the total unrecognized compensation expense related to unvested options was $90 million, which is expected to be recognized on a straight-line basis over a weighted-average period of 4.44 years. In addition, as of July 30, 2022, the total unrecognized compensation expense related to a fully vested option grant made to Mr. Friedman in October 2020 was $23 million, which will be recognized on an accelerated basis through May 2025 (refer to Chairman and Chief Executive Officer Option Grant below).

As of July 30, 2022, we had 22,670 restricted stock units outstanding with a weighted-average grant date fair value of $436.17 per share. During the three months ended July 30, 2022, 700 restricted stock units vested with a weighted-average grant date fair value of $51.28 per share. During the six months ended July 30, 2022, 2,920 restricted stock units vested with a weighted-average grant date fair value of $159.65 per share. As of July 30, 2022, there was $7.6 million of total unrecognized compensation expense related to unvested restricted stock and restricted stock units, which is expected to be recognized over a weighted-average period of 4.29 years.

Chairman and Chief Executive Officer Option Grant

On October 18, 2020, our Board of Directors granted Mr. Friedman an option to purchase 700,000 shares of our common stock with an exercise price equal to $385.30 per share under the 2012 Stock Incentive Plan. Refer to Note 18—Stock-Based Compensation in the 2021 Form 10-K. The option will result in aggregate non-cash stock compensation expense of $174 million, of which $4.3 million and $5.8 million was recognized during the three months ended July 30, 2022 and July 31, 2021, respectively, and $10 million and $12 million was recognized during the six months ended July 30, 2022 and July 31, 2021, respectively (which is included in the stock-based compensation expense recorded during the three and six months ended July 30, 2022 and July 31, 2021 noted above).