Share-Based Compensation

6 Months Ended

Aug. 02, 2014


Note 9	Share-Based Compensation

The Company recognized share-based compensation expense of $1.4 million and $1.3 million during the thirteen weeks and $3.0 million and $2.9 million during the twenty-six weeks ended August 2, 2014 and August 3, 2013, respectively.

The Company issued 62,117 shares of common stock during the thirteen weeks and 514,242 shares of common stock during the twenty-six weeks ended August 2, 2014, respectively, for restricted stock grants, stock options exercised, and directors’ fees.

During the thirteen weeks ended August 2, 2014, the Company granted 8,800 restricted shares to certain employees with a weighted-average grant date fair value of $28.02. During the twenty-six weeks ended August 2, 2014, the Company granted 279,710 restricted shares to certain employees with a weighted-average grant date fair value of $28.17. Of the 279,710 restricted shares granted, 277,910 of the 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 both the thirteen and twenty-six weeks ended August 2, 2014, the Company cancelled 27,600 shares of restricted stock awards as a result of forfeitures.

During the thirteen and twenty-six weeks ended August 2, 2014, the Company granted zero and 88,185 performance share units, respectively, 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 fair value is based on the unadjusted quoted market price for the Company’s common stock on each measurement date.

The Company also granted 39,476 and 40,387 restricted stock units to non-employee directors with weighted-average grant date fair values of $28.73 and $28.68, respectively, during the thirteen and twenty-six weeks ended August 2, 2014. Of the 39,476 restricted stock units granted during the thirteen weeks ended August 2, 2014, 776 restricted stock units for dividend equivalents vested immediately and compensation expense was fully recognized during the period. The remaining 38,700 restricted stock units vest in one year, and compensation expense will be recognized ratably over the one-year period based upon the fair value of the restricted stock units, as remeasured at the end of each period.

- 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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