Stock-Based Compensation

Stock-based compensation. For the three month periods ended May 2, 2015 and May 3, 2014, the Company recognized stock-based compensation expense as follows:



	Three Months Ended
($000)	May 2, 2015		May 3, 2014
Restricted stock	$	8,573	$	7,953
Performance awards	5,106		3,524
Employee stock purchase plan	609		558
Total	$	14,288	$	12,035

Total stock-based compensation recognized in the Company's Condensed Consolidated Statements of Earnings for the three month periods ended May 2, 2015 and May 3, 2014 is as follows:



	Three Months Ended
Statements of Earnings Classification ($000)	May 2, 2015		May 3, 2014
Cost of goods sold	$	7,063	$	6,178
Selling, general and administrative	7,225		5,857
Total	$	14,288	$	12,035

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 over the vesting period of generally three to five years.

During the three month periods ended May 2, 2015 and May 3, 2014, shares purchased by the Company for tax withholding totaled 586,599 and 484,354, respectively, and are considered treasury shares which are available for reissuance.

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.

As of May 2, 2015, shares subject to repurchase related to unvested restricted stock and performance share awards totaled 3.0 million shares. A summary of restricted stock and performance share award activity for the three month period ended May 2, 2015 is presented below:



(000, except per share data)	Number of shares		Weighted average grant date fair value
Unvested at January 31, 2015	3,491		$	48.02
Awarded	888		103.95
Released	(1,187	)	32.46
Forfeited	(171	)	57.08
Unvested at May 2, 2015	3,021		$	66.67

The unamortized compensation expense at May 2, 2015 was $120.9 million which is expected to be recognized over a weighted-average remaining period of 2.3 years. The unamortized compensation expense at May 3, 2014 was $98.1 million, which was expected to be recognized over a weighted-average remaining period of 2.1 years.

Employee stock purchase plan. Under the Employee Stock Purchase Plan (“ESPP”), eligible employees participating in the quarterly offering period can choose to spend up to the lesser of 10% of their annual base earnings or the IRS annual share purchase limit of $25,000 in aggregate market value to purchase the Company’s common stock each year. 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. A summary of the stock option activity for the three month period ended May 2, 2015 is presented below:



(000, except per share data)	Number of shares		Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
Outstanding at January 31, 2015	519		$	14.09
Granted	—		—
Exercised	(259	)	13.90
Forfeited	—		—
Outstanding at May 2, 2015, all vested	260		$	14.28	1.00	$	22,756

No stock options were granted during the three month periods ended May 2, 2015 and May 3, 2014.

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 May 2, 2015 (number of shares in thousands):



					Options outstanding and exercisable
Exercise price range					Number of shares	Remaining life	Exercise price
$	11.47	to	$	13.77	69	0.80	$	13.31
13.85		to	13.85		18	0.05	13.85
13.91		to	13.91		85	0.86	13.91
13.92		to	16.39		88	1.49	15.52
$	11.47	to	$	16.39	260	1.00	$	14.28