Total compensation expense, included in SG&A, and the associated tax benefits recognized related to our share-based compensation plans, were as follows:

We use the Black-Scholes option-pricing model to estimate the fair value of options and the stock purchase plan. The Black-Scholes option-pricing model incorporates various and subjective assumptions, including expected term and expected volatility.

The table below shows assumptions used to compute share-based compensation expense for awards granted during the thirty-nine weeks ended October 29, 2022 and October 30, 2021.

The information in the table below provides activity under our stock option plans for the thirty-nine weeks ended October 29, 2022.

(1)

On August 24, 2022, the Company granted options and other awards to its new President and Chief Executive Officer, Mary N. Dillon. These awards were granted outside of the 2007 Stock Incentive Plan as employment inducement awards and do not require shareholder approval under the rules of the New York Stock Exchange or otherwise. Shares available for future grant under this plan are reserved for the sole purpose to issue shares pursuant to her employment inducement awards.

The total fair value of options vested October 29, 2022 and October 30, 2021 was $4 million for both periods. The cash received from option exercises during the thirteen and thirty-nine weeks ended October 29, 2022 were $1 million and $4 million, respectively. The related tax benefits realized from option exercises during the thirteen and thirty-nine weeks ended October 29, 2022 were not significant. The cash received from option exercises during the thirteen and thirty-nine weeks ended October 30, 2021 were not significant and $10 million, respectively. The related tax benefits realized from option exercises during the thirteen and thirty-nine weeks ended October 30, 2021 were not significant and $2 million, respectively.

15. Share-Based Compensation (continued)

The total intrinsic value of options exercised (the difference between the market price of our common stock on the exercise date and the price paid by the optionee to exercise the option) is presented below:


	Thirteen weeks ended				Thirty-nine weeks ended
	October 29,		October 30,		October 29,		October 30,
($ in millions)	2022		2021		2022		2021
Exercised	$	—	$	—	$	1	$	8

The aggregate intrinsic value for stock options outstanding, and outstanding and exercisable (the difference between our closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options) is presented below:

As of October 29, 2022, there was $4 million of total unrecognized compensation cost related to nonvested stock options which is expected to be recognized over a remaining weighted-average period of 1.5 years.

The table below summarizes information about stock options outstanding and exercisable at October 29, 2022


	Options Outstanding				Options Exercisable
		Weighted-
		Average	Weighted-			Weighted-
		Remaining	Average			Average
Range of Exercise	Number	Contractual	Exercise		Number	Exercise
Prices	Outstanding	Life	Price		Exercisable	Price
	(in thousands, except prices per share and contractual life)
$21.60 - $36.51	1,241	7.1	$	26.41	584	$	24.22
$44.78 - $48.98	446	3.0		45.02	446		45.02
$53.61 - $58.94	501	5.5		56.69	397		57.44
$62.02 - $72.83	1,183	2.7		66.14	1,183		66.14
	3,371	4.8	$	47.31	2,610	$	51.82

Restricted Stock Units and Performance Stock Units

Restricted stock units (“RSU”) are awarded to certain officers, key employees of the Company, and nonemployee directors. Additionally, performance stock units (“PSU”) are awarded to officers and certain key employees in connection with our long-term incentive program. Each RSU and PSU represents the right to receive one share of our common stock provided that the applicable performance and vesting conditions are satisfied. PSU awards granted in 2022 also include a performance objective based on our relative total shareholder return over the performance period to a pre-determined peer group, assuming the reinvestment of dividends. The fair value of these awards is determined using a Monte Carlo simulation as of the date of the grant and share-based compensation expense will not be adjusted should the target awards vary from actual awards.

15. Share-Based Compensation (continued)

Generally, RSU awards fully vest after the passage of time, typically three years for employees and one year for nonemployee directors, provided there is continued service with the Company until the vesting date, subject to the terms of the award. PSU awards are earned only after the attainment of performance goals in connection with the relevant performance period and vest after an additional one-year period. No dividends are paid or accumulated on any RSU or PSU awards. Compensation expense is recognized over the vesting period.

RSU and PSU activity for the thirty-nine weeks ended October 29, 2022 is summarized as follows:


			Weighted-Average
	Number		Remaining		Weighted-Average
	of		Contractual		Grant Date
	Shares		Life		Fair Value
		(in thousands)		(in years)		(per share)
Nonvested at beginning of year		1,391			$	43.95
Granted		1,221				30.60
Vested		(112)				55.20
Performance adjustment ⁽¹⁾		(40)
Forfeited		(314)				32.89
Nonvested at October 29, 2022		2,146		1.6	$	37.15

Aggregate value ($ in millions)	$	80

(1)	This represents adjustments made to PSUs reflecting changes in estimates based upon our current performance against predefined financial targets.

The total value of RSU and PSU awards that vested during the thirty-nine weeks ended October 29, 2022 and October 30, 2021 was $6 million and $23 million, respectively. As of October 29, 2022, there was $37 million of total unrecognized compensation cost related to nonvested awards.

Thirty-nine weeks ended

October 29,

October 30,

($ in millions)

Outstanding

Outstanding and exercisable