Share-Based Compensation

3 Months Ended

May 03, 2014


Note 9	Share-Based Compensation

The Company recognized share-based compensation expense of $1.6 million for both the thirteen weeks ended May 3, 2014 and May 4, 2013.

The Company issued 452,125 shares of common stock during the thirteen weeks ended May 3, 2014 for restricted stock grants, stock options exercised, and directors’ fees.

During the thirteen weeks ended May 3, 2014, the Company granted 270,910 restricted shares to certain employees with a weighted-average grant date fair value of $28.18. Of the 270,910 restricted shares, 269,110 restricted shares will vest in four years and share-based compensation expense will be recognized on a straight-line basis over the four-year period. The remaining 1,800 restricted shares will vest in one year. During the thirteen weeks ended May 3, 2014, the Company did not cancel any restricted stock awards as a result of forfeitures.

The Company granted 88,185 performance share units during the thirteen weeks ended May 3, 2014 with a weighted-average grant date fair value of $28.18. Vesting of performance-based units is dependent upon the financial performance of the Company and the attainment of certain financial goals during the next three years. Performance share units are settled in cash based on the Company’s stock price upon payout. The performance share units may pay out at a maximum of 200% of the target number of units. Compensation expense is being recognized based on the fair value of the award and the anticipated number of units to be awarded in accordance with the vesting schedule of the units over the three-year service period. The performance share units are settled in cash and their value is dependent upon the Company’s stock price. As a result, these performance share units are adjusted each period based on the quoted market price for the Company’s common stock.

The Company also granted 910 restricted stock units for dividend equivalents on previously granted restricted stock units to non-employee directors with a weighted-average grant date fair value of $26.63 during the thirteen weeks ended May 3, 2014. All restricted stock units granted during the thirteen weeks ended May 3, 2014 vested immediately as of the payment date for the dividend.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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