Stock-Based Compensation (Tables)

12 Months Ended

Feb. 03, 2024

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Summary Of Stock-Based Compensation Expense

The following table summarizes our stock-based compensation expense:

Fiscal year	2023	2022	2021
RSUs	$40	$41	$52
Stock options	6	11	22
Other1	6	7	5
Total stock-based compensation expense, before income tax benefit	52	59	79
Income tax benefit	(13)	(15)	(20)
Total stock-based compensation expense, net of income tax benefit	$39	$44	$59

1 Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards.

Stock-Based Compensation Expense Before Income Tax Benefit

The stock-based compensation expense before income tax benefit was recorded in our Consolidated Statements of Earnings as follows:

Fiscal year	2023	2022	2021
Cost of sales and related buying and occupancy costs	$10	$9	$15
SG&A expenses	42	50	64
Total stock-based compensation expense, before income tax benefit	$52	$59	$79

Summary Of Restricted Stock Unit Activity

A summary of restricted stock unit activity for 2023 is presented below:

Fiscal year	2023
	Shares	Weighted-average grant date fair value per unit
Outstanding, beginning of year	4.6	$32
Granted	3.6	16
Vested	(1.3)	26
Forfeited or canceled	(0.7)	21
Outstanding, end of year	6.2	$19

Assumptions To Estimate The Fair Value For Stock Options At Grant Date

We used the following assumptions to estimate the fair value for stock options at each grant date:

Fiscal year		2023		2022		20211
Assumptions
	Risk-free interest rate2	3.98% – 5.05%		1.18% – 1.95%		0.11% – 1.51%
	Weighted-average volatility3	52.3	%	52.4	%	52.2	%
	Weighted-average expected dividend yield4	3.8	%	3.4	%	3.4	%
	Expected life in years5	8.2		8.3		8.3
Grant Date Information
	Date of grant	March 6, 2023		March 3, 2022		March 4, 2021
	Weighted-average fair value per option	$8		$10		$13
	Exercise price per option	$20		$26		$36

1 The options granted on March 4, 2021 include market performance-based stock options with a contractual term of ten years that were awarded to certain members of senior management as well as time-based options. The price-hurdle options contain a market condition that requires the closing price of our stock to meet or exceed certain price thresholds for 20 consecutive trading days in order for shares to vest.

2 Represents the yield on U.S. Treasury securities that mature over the 10-year life of the stock options.

3 Based on a combination of the historical volatility of our common stock and the implied volatility of exchange-traded options for our common stock.

4 Our forecasted dividend yield for the next 10 years.

5 Derived from the output of the binomial lattice model and represents the estimated period of time until option exercise. The expected term of options granted is based on our historical exercise behavior, taking into consideration the contractual term of the option and our employees’ expected exercise and post-vesting employment termination behavior.

Summary Of Stock Option Activity

A summary of stock option activity for 2023 is presented below:

Fiscal year	2023
	Shares	Weighted- average exercise price	Weighted-average remaining  contractual life (years)	Aggregate  intrinsic  value1
Outstanding, beginning of year	8.5	$38
Granted	1.1	20
Exercised	(0.3)	16
Forfeited or canceled	(1.7)	44
Outstanding, end of year	7.6	$35	5	$5
Exercisable, end of year	4.8	$40	4	$5
Fiscal year		2023	2022	2021
Aggregate intrinsic value of options exercised		$1	$4	$—
Fair value of stock options vested		$4	$27	$2

1 The aggregate intrinsic value represents the amount realized if all in-the-money options were exercised on the final business day before February 3, 2024.