STOCK-BASED COMPENSATION

Stock-based compensation expense by type of grant for each period presented was as follows (in thousands):



	Three Months Ended
	April 29, 2017			April 30, 2016
Restricted stock units	$	73		$	—
Non-vested stock	1,508			1,736
Performance shares	674			1,073
Total compensation expense	2,255			2,809
Related tax benefit	(848		)	(1,056		)
Stock-based compensation expense, net of tax	$	1,407		$	1,753

As of April 29, 2017, we have unrecognized compensation cost of $17.3 million related to stock-based compensation awards granted. That cost is expected to be recognized over a weighted average period of 2.6 years.

Stock Appreciation Rights (“SARs”)

Prior to 2012, we granted SARs to our employees, which generally vested 25% annually over a four year period from the grant date. Outstanding SARs expire, if not exercised or forfeited, within seven years from the grant date. Exercised SARs are settled by the issuance of common stock in an amount equal to the increase in share price of our common stock between the grant date and the exercise date.

The following table summarizes SARs activity for the three months ended April 29, 2017:



Stock Appreciation Rights	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Outstanding, vested and exercisable at January 28, 2017	177,900		$	17.69
Expired	(55,700	)	15.86
Outstanding, vested and exercisable at April 29, 2017	122,200		$	18.53	0.8	$	—

Restricted Stock Units (“RSUs”)

We grant RSUs to our employees. These awards vest 25% annually over a four year period from the grant date. RSUs are accounted for as liabilities as we are required to settle the awards in cash. The liability for RSUs is remeasured based on the closing share price of our common stock at each reporting period until the award vests. Compensation expense is recognized ratably over the vesting period and adjusted with changes in the fair value of the liability. Unvested RSUs have the right to receive a dividend equivalent payment equal to cash dividends paid on our common stock. Each vested RSU is settled in cash in an amount equal to the fair market value of one share of our common stock on the vesting date, not to exceed five times the per share fair market value of our common stock on the grant date.

The following table summarizes restricted stock unit activity for the three months ended April 29, 2017:



Restricted Stock Units	Number of Units	Weighted Average Grant Date Fair Value
Outstanding at January 28, 2017	—	$	—
Granted	1,146,250	2.12
Vested	—	—
Forfeited	—	—
Outstanding at April 29, 2017	1,146,250	2.12

The weighted-average grant date fair value for restricted stock units granted during the three months ended April 29, 2017 was $2.12.

Non-vested Stock

We grant shares of non-vested stock to our employees and non-employee directors. Non-vested stock awarded to employees vests 25% annually over a four year period from the grant date. Non-vested stock awarded to non-employee directors cliff vest after one year. Compensation expense is recognized ratably over the vesting period. Certain non-vested stock awards have shareholder rights, including the right to vote and to receive dividends. The fair value of non-vested stock awards with dividend rights is based on the closing share price of our common stock on the grant date. The fair value of non-vested stock awards that do not have dividend rights is discounted for the present value of expected dividends during the vesting period. Non-vested stock converts one-for-one to common stock at the end of the vesting period.

The following table summarizes non-vested stock activity for the three months ended April 29, 2017:



Non-vested Stock	Number of Shares		Weighted Average Grant Date Fair Value
Outstanding at January 28, 2017	1,596,410		$	10.22
Granted	226,259		2.09
Vested	(362,510	)	13.61
Forfeited	(18,459	)	9.77
Outstanding at April 29, 2017	1,441,700		8.09

The weighted-average grant date fair value for non-vested stock granted during the three months ended April 29, 2017 and April 30, 2016 was $2.09 and $7.14, respectively. The aggregate intrinsic value of non-vested stock that vested during the three months ended April 29, 2017 and April 30, 2016, was $0.8 million and $2.2 million, respectively. The payment of the employees’ tax liability for a portion of the vested shares was satisfied by withholding shares with a fair value equal to the tax liability. As a result, the actual number of shares issued during three months ended April 29, 2017 was 270,843.

Performance Shares

We grant performance shares as a means of rewarding management for our long-term performance based on total shareholder return relative to a specific group of companies over a three-year performance cycle. Performance shares cliff vest following a three-year performance cycle. Compensation expense is recorded ratably over the corresponding vesting period. The fair value of performance shares is estimated using a Monte Carlo simulation, based on the expected term of the award, a risk-free rate, expected dividends, expected volatility, and stock price for our common stock and the specified peer group. The expected term is estimated based on the vesting period of the awards, the risk-free rate is based on the yield on U.S. Treasury securities matching the vesting period, and the volatility is based on the historical volatility over the expected term. Grant recipients do not have any shareholder rights until the granted shares have been issued. The actual number of shares that may be issued ranges from zero to a maximum of twice the number of granted shares outstanding on the vesting date.

The following table summarizes information about the performance shares that were outstanding at April 29, 2017:



Period Granted	Target Shares Outstanding at January 28, 2017	Target Shares Granted	Target Shares Vested	Target Shares Forfeited	Target Shares Outstanding at April 29, 2017	Weighted Average Grant Date Fair Value Per Share
2015	158,490	—	—	—	158,490	$	28.33
2016	330,233	—	—	—	330,233	8.69
2017	—	600,000	—	—	600,000	1.80
Total	488,723	600,000	—	—	1,088,723	7.75

The weighted-average grant date fair value for performance shares granted during the three months ended April 29, 2017 and April 30, 2016 was $1.80 and $8.69, respectively. No performance shares vested during the three months ended April 29, 2017 and April 30, 2016, respectively.