Stock-Based Compensation
 6 Months Ended
Aug. 01, 2015
Share-based Compensation [Abstract]  
Stock-Based Compensation
Stock-based Compensation
We grant stock-based compensation awards to employees and non-employee directors under the J. C. Penney Company, Inc. 2014 Long-Term Incentive Plan (2014 Plan). As of August 1, 2015, a maximum of 11.6 million shares of stock were available for future grant under the 2014 Plan.
Stock-based compensation expense for the three months ended August 1, 2015 and August 2, 2014 was $15 million and $11 million, respectively. Stock-based compensation expense for the six months ended August 1, 2015 and August 2, 2014 was $30 million and $21 million, respectively. Through the first six months of 2015, the Company granted the following stock-based compensation awards:
 
 
Restricted Stock Units (RSU)
 
Stock Options
 
Weighted Average Grant Date Fair Value
Grant Date
 
Time-based
 
Performance-based
 
Time-based
 
Weighted Average Exercise Price
 
March 3, 2015
 
28,554

 
—

 
—

 
$
—

 
$
7.88

March 19, 2015
 
2,135,177

 
1,534,754

 
4,294,885

 
$
7.77

 
$
5.36

May 18, 2015
 
11,696

 
—

 
—

 
$
—

 
$
8.55

May 20, 2015
 
15,878

 
31,755

 
38,624

 
$
8.66

 
$
6.38

June 4, 2015
 
49,190

 
98,380

 
123,188

 
$
8.64

 
$
6.28

June 11, 2015(1)
 
31,437

 
—

 
78,358

 
$
8.35

 
$
4.78

Total
 
2,271,932

 
1,664,889

 
4,535,055

 
$
7.81

 
$
5.40



(1) RSUs and options were granted under an equity inducement plan.

Performance-based awards that ultimately vest are dependent on market performance targets measured by the achievement of internal profitability targets for 2015 through 2017 (performance condition).

In addition to the grants above, on March 19, 2015, we granted approximately 2.5 million phantom units as part of our management incentive compensation plan, which are similar to RSUs in that the number of units granted was based on the price of our stock, but the units will be settled in cash based on the value of our stock on the vesting date, up to a maximum of $15.54 per phantom unit. The fair value of the awards is remeasured at each reporting period and was $8.24 per share as of August 1, 2015. Compensation expense, which is variable, is recognized over the vesting period with a corresponding liability, which is recorded in Other liabilities in our unaudited Interim Consolidated Balance Sheets. We also granted approximately 154,000 fully vested RSUs to directors during the second quarter of 2015 with a fair value of $8.64 per RSU award.