Stock Based Compensation - Notes to Financial Statements

6 Months Ended

Aug. 03, 2019

Disclosure Of Compensation Related Costs Sharebased Payments Abstract

Stock Based Compensation

NOTE 6 – STOCK-BASED COMPENSATION:

As of August 3, 2019, the Company had two long-term compensation plans pursuant to which stock-based compensation was outstanding or could be granted. The 2018 Incentive Compensation Plan and 2013 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, shares for grant were no longer available under the 2013 Incentive Compensation Plan.

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 August 3, 2019:

	2013	2018
	Plan	Plan	Total
Options and/or restricted stock initially authorized	1,500,000	4,725,000	6,225,000
Options and/or restricted stock available for grant:
August 3, 2019	-	4,167,712	4,167,712

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 August 3, 2019 and February 2, 2019, there was $14,622,000 and $11,989,000, respectively, of total unrecognized compensation expense related to nonvested restricted stock awards, which had a remaining weighted-average vesting period of 2.2years and 2.2years, respectively. The total compensation expense during the three and six months ended August 3, 2019 was $1,495,000 and $2,140,000, respectively, compared to $1,821,000 and $2,367,000, respectively, for the three and six months ended August 4, 2018. 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 six months ended August 3, 2019:

			Weighted Average
	Number of		Grant Date Fair
	Shares		Value Per Share
Restricted stock awards at February 2, 2019	771,851	$	24.22
Granted	361,170		14.89
Vested	(129,108)		34.44
Forfeited or expired	(36,396)		19.77
Restricted stock awards at August 3, 2019	967,517	$	19.54

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 six months ended August 3, 2019 and August 4, 2018, the Company sold 26,078 and 22,554 shares to employees at an average discount of $2.16 and $2.22 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 $56,000 and $50,000 for the six months ended August 3, 2019 and August 4, 2018, respectively. These expenses are classified as a component of Selling, general and administrative expenses.