Share-Based Compensation

6 Months Ended

Jul. 30, 2011

Share-Based Compensation

Share-Based Compensation

Note 8 — 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 and twenty-six weeks ended July 30, 2011 and July 31, 2010 are as follows:

13 Weeks Ended

26 Weeks Ended

July 30, 2011

July 31, 2010

July 30, 2011

July 31, 2010

Maximum

Maximum

Maximum

Maximum

Share

share

Share

Share

Share

share

Share

Share

units

equivalents

units

equivalents

units

equivalents

units

equivalents

Stock-settled SARs(1):

Vest in installments over 3 years

—

—

3,969

2,205

213,141

118,412

724,094

402,274

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				26 Weeks Ended
	July 30,		July 31,		July 30,		July 31,
	2011		2010		2011		2010
Nonvested shares and nonvested share units:
Vest in installments over 3 years		—		3,673		—		317,036
Vest in installments over 2 years		—		—		—		77,231
Cliff vest after 3 years		4,031		—		160,718		—
Performance grant — vest in installments over 3 years(2)		677		—		131,755		77,227
Performance grant — cliff vest after 3 years(2)		4,880		—		97,463		—
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 July 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.

In the second quarter of 2011, 731 thousand stock-settled SARs and 161 thousand nonvested share and share units vested as a result of the departure of the Company's Chief Executive Officer. These vested shares resulted in $3.2 million of incremental pre-tax share-based compensation expense during the 13 weeks ended July 30, 2011.

The total fair value of share grants for the 26 weeks ended July 30, 2011 and July 31, 2010 is $9.6 million and $17.1 million, respectively. The total fair value of share grants for the 13 weeks ended July 30, 2011 and July 31, 2010 is $0.1 million and $0.1 million, respectively.

Total share-based compensation expense is summarized as follows:

	13 Weeks Ended				26 Weeks Ended
	July 30,		July 31,		July 30,		July 31,
(dollars in millions)	2011		2010		2011		2010
Cost of sales	$	1.3	$	1.0	$	2.2	$	2.2
Selling, general and administrative expenses		3.8		3.1		6.4		6.7
Share-based compensation expense before income taxes	$	5.1	$	4.1	$	8.6	$	8.9

Included in this amount is $1.3 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 July 30, 2011, the Company had unrecognized compensation expense related to nonvested awards of $15.2 million, which is expected to be recognized over a weighted average period of 0.9 years.