Stock-Based Compensation

Stock-based compensation. For the three and nine month periods ended October 31, 2015 and November 1, 2014, the Company recognized stock-based compensation expense as follows:



	Three Months Ended				Nine Months Ended
($000)	October 31, 2015		November 1, 2014		October 31, 2015		November 1, 2014
Restricted stock	$	9,449	$	9,202	$	27,417	$	25,704
Performance awards	5,553		3,891		16,195		11,376
Employee stock purchase plan	690		588		1,961		1,696
Total	$	15,692	$	13,681	$	45,573	$	38,776

Total stock-based compensation recognized in the Company's Condensed Consolidated Statements of Earnings for the three and nine month periods ended October 31, 2015 and November 1, 2014 is as follows:



	Three Months Ended				Nine Months Ended
Statements of Earnings Classification ($000)	October 31, 2015		November 1, 2014		October 31, 2015		November 1, 2014
Cost of goods sold	$	7,342	$	6,740	$	21,824	$	20,003
Selling, general and administrative	8,350		6,941		23,749		18,773
Total	$	15,692	$	13,681	$	45,573	$	38,776

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 and nine month periods ended October 31, 2015 and November 1, 2014, shares purchased by the Company for tax withholding totaled 71,893 and 1,278,796 and 28,774 and 1,060,026, 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 October 31, 2015, shares related to unvested restricted stock and performance share awards totaled 5.9 million shares. A summary of restricted stock and performance share award activity for the nine month period ended October 31, 2015 is presented below:



(000, except per share data)	Number of shares		Weighted average grant date fair value
Unvested at January 31, 2015	6,982		$	24.01
Awarded	1,965		51.81
Released	(2,649	)	17.05
Forfeited	(360	)	30.14
Unvested at October 31, 2015	5,938		$	34.32

The unamortized compensation expense at October 31, 2015 was $105.1 million which is expected to be recognized over a weighted-average remaining period of 2.0 years. The unamortized compensation expense at November 1, 2014 was $98.3 million, which was expected to be recognized over a weighted-average remaining period of 2.0 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 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 nine month period ended October 31, 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	1,038		$	7.05
Granted	—		—
Exercised	(657	)	6.92
Forfeited	—		—
Outstanding at October 31, 2015, all vested	381		$	7.27	0.72	$	16,485

No stock options were granted during the nine month periods ended October 31, 2015 and November 1, 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 October 31, 2015 (number of shares in thousands):



					Options outstanding and exercisable
Exercise price range					Number of shares	Remaining life	Exercise price
$	6.08	to	$	6.86	15	0.49	$	6.32
6.89		to	6.89		76	0.54	6.89
6.95		to	6.95		156	0.37	6.95
7.04		to	7.66		37	0.46	7.30
8.19		to	8.19		97	1.56	8.19
$	6.08	to	$	8.19	381	0.72	$	7.27