Share-Based Compensation

3 Months Ended

May 02, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Note 9 Share-Based Compensation

The Company recognized share-based compensation expense of $1.7 million and $1.6 million during the thirteen weeks ended May 2, 2015 and May 3, 2014, respectively.

The Company issued 344,679 and 452,125 shares of common stock during the thirteen weeks ended May 2, 2015 and May 3, 2014, respectively, for stock-based awards, stock options exercised and directors' fees.

During the thirteen weeks ended May 2, 2015 and May 3, 2014, the Company granted 285,421 and 270,910 restricted shares, respectively, to certain employees with weighted-average grant date fair values of $30.06 and $28.18, respectively. Of the 285,421 restricted shares granted during the thirteen weeks ended May 2, 2015, 272,921 of the shares will vest in four years and 12,500 of the shares will vest in five years. Of the 270,910 restricted shares granted during the thirteen weeks ended May 3, 2014, 269,110 of the shares vest in four years and the remaining 1,800 restricted shares vested in one year. Share-based compensation expense is recognized on a straight-line basis over the respective vesting periods. During the thirteen weeks ended May 2, 2015 and May 3, 2014, the Company canceled 34,850 and zero shares of restricted stock awards, respectively, as a result of forfeitures.

During the thirteen weeks ended May 2, 2015, the Company granted performance share awards for a targeted 177,921 shares with a weighted-average grant date fair value of $30.12.  During the thirteen weeks ended May 3, 2014, the Company granted performance share awards for a targeted 88,185 units with a weighted-average grant date fair value of $28.18. Vesting of performance-based awards is dependent upon the financial performance of the Company and the attainment of certain financial goals during the next three years. At the end of the vesting period, the employee will have earned an amount of shares or units between 0% and 200% of the targeted award, depending on the achievement of specified financial goals for the service period. 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.

During the thirteen weeks ended May 2, 2015, the Company granted 16,667 stock options with a weighted-average grant date fair value of $29.18. Of the 16,667 stock options granted, 8,333 will vest in four years and 8,334 will vest in five years.

The Company also granted 704 and 910 restricted stock units to non-employee directors during the thirteen weeks ended May 2, 2015 and May 3, 2014, respectively, with weighted-average grant date fair values of $32.30 and $26.63, respectively. All restricted stock units for dividend equivalents vested immediately and compensation expense was fully recognized during the thirteen weeks ended May 2, 2015 and May 3, 2014.