Share-Based Compensation

3 Months Ended

Apr. 30, 2011

Note 7 — Share-Based Compensation

Under its equity incentive plans, the Company currently grants share appreciation vehicles consisting of stock-settled stock appreciation rights (“stock-settled SARs”), cash-settled stock appreciation rights (“cash-settled SARs”), as well as full value vehicles in the form of nonvested shares and nonvested share units ( “nonvested shares and nonvested share units”) and phantom stock units (“phantom nonvested share units”).

The number of shares for grants made in the thirteen weeks ended April 30, 2011 and May 1, 2010 are as follows:

April 30, 2011

May 1, 2010

Maximum share

Maximum Share

Share units

equivalents

Share units

equivalents

Stock-settled SARs⁽¹⁾:

Vest in installments over 3 years

213,141

118,412

720,125

400,069

Cliff vest after 3 years

—

12,200

6,778


⁽¹⁾		All of the stock-settled SARs issued by the Company in the periods presented contain an appreciation cap, which limits the appreciation for which shares of common stock will be granted. The appreciation cap is limited to 125% of the fair market value of the underlying common stock on the grant date of the SAR, meaning that the maximum shares issuable under a SAR is 0.56 shares per SAR.


	13 Weeks Ended
	April 30,		May 1,
	2011		2010

Nonvested shares and nonvested share units:
Vest in installments over 3 years		—		313,363
Vest in installments over 2 years		—		77,231
Cliff vest after 3 years		156,687		—
Performance grant — vest in installments over 3 years⁽²⁾		131,078		77,227
Performance grant — cliff vest after 3 years⁽²⁾		92,583		—

Phantom nonvested share units:
Vest in installments over 3 years		—		18,033
Cliff vest after 3 years		1,350		—
Performance grant — vest in installments over 3 years⁽²⁾		450		—
Performance grant — cliff vest after 3 years⁽²⁾		6,584		—

Cash-settled SARs:
Vest in installments over 3 years		—		19,497


⁽²⁾		Certain nonvested shares are subject to a performance condition for vesting. The performance grant vests only if the performance condition is met. As of April 30, 2011, the Company has assessed the likelihood that the performance condition will be met and has recorded the related expense based on the estimated outcome.

The total fair value of share grants for the 13 weeks ended April 30, 2011 and May 1, 2010 is $9.5 million and $17.0 million, respectively.

Total share-based compensation expense is summarized as follows:


	13 Weeks Ended
	April 30,			May 1,
(dollars in millions)	2011			2010
Cost of sales	$	0.9		$	1.2
Selling, general and administrative expenses		2.6			3.6

Share-based compensation expense before income taxes		3.5			4.8
Tax benefit		(1.3	)		(1.8	)

Share-based compensation expense after income taxes	$	2.2		$	3.0

Included in this amount is $0.4 million of expense that was recognized as a result of the grants made in 2011. No amount of share-based compensation was capitalized. As of April 30, 2011, the Company had unrecognized compensation expense related to nonvested awards of $23.8 million, which is expected to be recognized over a weighted average period of 1.1 years.