Stock-Based Compensation

6 Months Ended

Aug. 01, 2015

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

Stock-Based Compensation

NOTE 13—STOCK-BASED COMPENSATION

The Company estimates the value of equity grants based upon an option-pricing model and recognizes this estimated value as compensation expense over the vesting periods. The Company recognizes expense associated with performance-based awards when it becomes probable that the performance condition will be met. Once it becomes probable that an award will vest, the Company recognizes compensation expense equal to the number of shares which are probable to vest multiplied by the fair value of the related shares measured at the grant date.

Stock-based compensation expense is included in selling, general and administrative expenses on the condensed consolidated statements of income. The Company recorded stock-based compensation expense of $6.3 million and $4.5 million in the three months ended August 1, 2015 and August 2, 2014, respectively. The Company recorded stock-based compensation expense of $11.6 million and $6.7 million in the six months ended August 1, 2015 and August 2, 2014, respectively. No stock-based compensation cost has been capitalized in the accompanying condensed consolidated financial statements.

2012 Stock Option Plan and 2012 Stock Incentive Plan

As of August 1, 2015, 6,925,446 options were outstanding with a weighted-average exercise price of $54.20 per share and 5,210,786 options were vested with a weighted-average exercise price of $48.90 per share. The aggregate intrinsic value of options outstanding, options vested or expected to vest, and options exercisable as of August 1, 2015 was $327.3 million, $321.2 million, and $273.9 million, respectively. Stock options exercisable as of August 1, 2015 had a weighted-average remaining contractual life of 7.54 years. As of August 1, 2015, the total unrecognized compensation expense related to unvested options was $39.7 million, which is expected to be recognized on a straight-line basis over a weighted-average period of 3.88 years.

As of August 1, 2015, the Company had 819,362 restricted stock and restricted stock unit awards outstanding with a weighted-average grant date fair value of $70.88 per share. During the three months ended August 1, 2015, 79,582 restricted stock and restricted stock unit awards with a weighted-average grant date fair value of $67.75 per share vested. During the six months ended August 1, 2015, 90,010 restricted stock and restricted stock unit awards with a weighted-average grant date fair value of $65.55 per share vested. As of August 1, 2015, there was $42.5 million of total unrecognized compensation expense related to unvested restricted stock and restricted stock unit awards which is expected to be recognized over a weighted-average period of 3.74 years.