Stock-Based Compensation

Stock-based compensation. For the three and nine month periods ended November 2, 2013 and October 27, 2012, the Company recognized stock-based compensation expense as follows:



	Three Months Ended				Nine Months Ended
($000)	November 2, 2013		October 27, 2012		November 2, 2013		October 27, 2012
Restricted stock	$	7,320	$	7,547	$	23,011	$	21,643
Performance awards	3,599		5,091		11,052		14,323
ESPP	542		502		1,609		1,414
Total	$	11,461	$	13,140	$	35,672	$	37,380

Total stock-based compensation recognized in the Company's Condensed Consolidated Statements of Earnings for the three and nine month periods ended November 2, 2013 and October 27, 2012 is as follows:



	Three Months Ended				Nine Months Ended
Statements of Earnings Classification ($000)	November 2, 2013		October 27, 2012		November 2, 2013		October 27, 2012
Cost of goods sold	$	5,582	$	6,457	$	18,218	$	17,434
Selling, general and administrative	5,879		6,683		17,454		19,946
Total	$	11,461	$	13,140	$	35,672	$	37,380

Restricted stock. The Company grants shares of restricted stock or restricted stock units to directors, officers, and key employees. The market value of shares of restricted stock and of the stock underlying restricted stock units at the date of grant is amortized to expense ratably over the vesting period of generally three to five years.

During the three and nine month periods ended November 2, 2013, shares acquired by the Company for tax withholding totaled 33,731 and 485,795 shares and are considered treasury shares which are available for reissuance. As of November 2, 2013, shares subject to repurchase related to unvested restricted stock totaled 4.0 million shares.



(000, except per share data)	Number of shares		Weighted average grant date fair value
Unvested at February 2, 2013	4,560		$	29.96
Awarded	758		58.10
Released	(1,248	)	23.92
Forfeited	(98	)	29.44
Unvested at November 2, 2013	3,972		$	37.26

The unamortized compensation expense at November 2, 2013 was $86.3 million, which is expected to be recognized over a weighted-average remaining period of 1.9 years. The unamortized compensation expense at October 27, 2012 was $83.5 million, which was expected to be recognized over a weighted-average remaining period of 2.0 years.

Performance shares. The Company has a performance share award program for senior executives. A performance share award represents a right to receive shares of restricted stock or restricted stock units on a specified settlement date based on the Company’s attainment of a profitability-based performance goal during the performance period, which is the Company’s fiscal year. If attained, the restricted stock or units then vest over a service period, generally two to three years from the date the performance award was granted. The release of shares related to restricted stock units earned are deferred generally for one year from the date earned.

Employee stock purchase plan. Under the Employee Stock Purchase Plan (“ESPP”), eligible employees participating in the quarterly offering period can choose to have up to the lesser of 10% or $21,250 of their annual base earnings withheld to purchase the Company’s common stock. The purchase price of the stock is 85% of the closing market price on the date of purchase. Purchases occur on a quarterly basis (on the last trading day of each calendar quarter). The Company recognizes expense for ESPP purchase rights equal to the value of the 15% discount given on the purchase date.

Stock option activity. The following table summarizes stock option activity for the nine month period ended November 2, 2013:



(000, except per share data)	Number of shares		Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
Outstanding at February 2, 2013	1,715		$	13.79
Granted	—		—
Exercised	(532	)	13.16
Forfeited	—		—
Outstanding at November 2, 2013, all vested	1,183		$	14.07	1.71	$	75,181

No stock options were granted during the nine month periods ended November 2, 2013 and October 27, 2012.

The following table summarizes information about the weighted average remaining contractual life (in years) and the weighted average exercise prices for stock options both outstanding and exercisable as of November 2, 2013 (number of shares in thousands):



					Options outstanding and exercisable
Exercise price range					Number of shares	Remaining life	Exercise price
$	11.39	to	$	13.81	244	1.58	$	12.90
13.83		to	13.91		290	2.17	13.89
13.92		to	14.35		419	1.37	14.31
14.36		to	15.38		182	1.47	14.73
16.39		to	16.39		48	3.56	16.39
$	11.39	to	$	16.39	1,183	1.71	$	14.07