Stock Based Compensation - Notes to Financial Statements

9 Months Ended

Nov. 03, 2018

Disclosure Of Compensation Related Costs Sharebased Payments Abstract

NOTE 6 – STOCK-BASED COMPENSATION:

As of November 3, 2018, the Company had four long-term compensation plans pursuant to which stock-based compensation was outstanding or could be granted. The Company’s 1987 Non-Qualified Stock Option Plan is for the granting of options to officers and key employees. As of November 3, 2018, there were no available stock options for grant. The 2018 Incentive Compensation Plan, 2013 Incentive Compensation Plan and 2004 Amended and Restated Incentive Compensation Plan are for the granting of various forms of equity-based awards, including restricted stock and stock options for grant, to officers, directors and key employees. Effective May 24, 2018 and May 23, 2013, shares for grant were no longer available under the 2013 Incentive Compensation Plan and 2004 Amended and Restated Incentive Compensation Plan, respectively.

The following table presents the number of options and shares of restricted stock initially authorized and available for grant under each of the plans as of November 3, 2018:

	1987	2004	2013	2018
	Plan	Plan	Plan	Plan	Total
Options and/or restricted stock initially authorized	5,850,000	1,350,000	1,500,000	4,725,000	13,425,000
Options and/or restricted stock available for grant:
November 3, 2018	-	-	-	4,503,140	4,503,140

In accordance with ASC 718, the fair value of current restricted stock awards is estimated on the date of grant based on the market price of the Company’s stock and is amortized to compensation expense on a straight-line basis over the related vesting periods. As of November 3, 2018 and February 3, 2018, there was $13,373,000 and $11,727,000, respectively, of total unrecognized compensation expense related to nonvested restricted stock awards, which had a remaining weighted-average vesting period of 2.4 years and 2.0 years, respectively. The total fair value of the shares recognized as compensation expense during the three and nine months ended November 3, 2018 was $1,233,000 and $3,601,000, respectively, compared to $1,185,000 and $2,911,000, respectively, for the three and nine months ended October 28, 2017. These expenses are classified as a component of Selling, general and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income.

The following summary shows the changes in the shares of unvested restricted stock outstanding during the nine months ended November 3, 2018:

			Weighted Average
	Number of		Grant Date Fair
	Shares		Value Per Share
Restricted stock awards at February 3, 2018	595,179	$	30.33
Granted	354,385		16.20
Vested	(139,669)		29.87
Forfeited or expired	(27,033)		25.73
Restricted stock awards at November 3, 2018	782,862	$	24.17

NOTE 6 – STOCK BASED-COMPENSATION (CONTINUED):

The Company’s Employee Stock Purchase Plan allows eligible full-time employees to purchase a limited number of shares of the Company’s Class A Common Stock during each semi-annual offering period at a 15% discount through payroll deductions. During the nine months ended November 3, 2018 and October 28, 2017, the Company sold 40,477 and 31,466 shares to employees at an average discount of $2.26 and $2.50 per share, respectively, under the Employee Stock Purchase Plan. The compensation expense recognized for the 15% discount given under the Employee Stock Purchase Plan was approximately $91,000 and $79,000 for the nine months ended November 3, 2018 and October 28, 2017, respectively. These expenses are classified as a component of Selling, general and administrative expenses.