Note 12 - Share-based Compensation

3 Months Ended

May 02, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

Note 12 Share-Based Compensation

The Company recognized share-based compensation expense of $2.4 million and $3.3 million during the thirteen weeks ended May 2, 2020 and May 4, 2019, respectively.

The Company issued 414,121 and 347,283 shares of common stock during the thirteen weeks ended May 2, 2020 and May 4, 2019, respectively, for restricted stock grants, stock performance awards issued to employees, stock options exercised and common and restricted stock grants issued to non-employee directors, net of forfeitures and shares withheld to satisfy the tax withholding requirement.  

Restricted Stock 

The following table summarizes restricted stock activity for the periods ended May 2, 2020 and May 4, 2019:

	Thirteen Weeks Ended						Thirteen Weeks Ended
	May 2, 2020						May 4, 2019
	Total Number of Restricted Shares			Weighted- Average Grant Date Fair Value			Total Number of Restricted Shares			Weighted- Average Grant Date Fair Value
February 1, 2020		1,271,795		$	26.77	February 2, 2019		1,249,223		$	29.17
Granted		550,683			5.81	Granted		397,550			23.42
Forfeited		(32,687	)		25.60	Forfeited		(21,425	)		29.51
Vested		(368,048	)		28.38	Vested		(204,920	)		30.06
May 2, 2020		1,421,743		$	18.20	May 4, 2019		1,420,428		$	27.43

All of the restricted shares granted during the thirteen weeks ended May 2, 2020 and May 4, 2019 have a graded-vesting term of three years.  Share-based compensation expense for graded-vesting grants is recognized ratably over the respective vesting periods.  

Performance Share Awards

During the thirteen weeks ended May 2, 2020, the Company granted no performance share awards.  During the thirteen weeks ended May 4, 2019, the Company granted performance share awards for a targeted 180,000 shares, with a weighted-average grant date fair value of $23.42.  Vesting of performance-based awards is dependent upon the financial performance of the Company and the attainment of certain financial goals during the three-year period following the grant.  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 the specified financial goals for the service period.  Compensation expense is recognized based on the fair value of the award and the anticipated number of shares or units to be awarded for each tranche in accordance with the vesting schedule of the units over the three-year service period.  

Restricted Stock Units for Non-Employee Directors

Equity-based grants may be made to non-employee directors in the form of restricted stock units ("RSUs") payable in cash or common stock at no cost to the non-employee director.  The RSUs earn dividend equivalents at the same rate as dividends on the Company's common stock.  The dividend equivalents, which vest immediately, are automatically re-invested in additional RSUs.  Expense related to the initial grant of RSUs is recognized ratably over the vesting period based upon the fair value of the RSUs.  The RSUs payable in cash are remeasured at the end of each period.  Expense for the dividend equivalents is recognized at fair value when the dividend equivalents are granted.  The Company granted 8,309 and 1,114 RSUs to non-employee directors for dividend equivalents, during the thirteen weeks ended May 2, 2020 and May 4, 2019, respectively, with weighted-average grant date fair values of $3.86 and $25.08, respectively.