Stock-Based Compensation

6 Months Ended

Jul. 30, 2016

Share-based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation. For the three and six month periods ended July 30, 2016 and August 1, 2015, the Company recognized stock-based compensation expense as follows:

	Three Months Ended				Six Months Ended
($000)	July 30, 2016		August 1, 2015		July 30, 2016		August 1, 2015
Restricted stock	$	9,484	$	9,395	$	18,549	$	17,969
Performance awards	8,290		5,537		16,239		10,642
Employee stock purchase plan	716		662		1,418		1,270
Total	$	18,490	$	15,594	$	36,206	$	29,881

Total stock-based compensation recognized in the Company's Condensed Consolidated Statements of Earnings for the three and six month periods ended July 30, 2016 and August 1, 2015 is as follows:

	Three Months Ended				Six Months Ended
Statements of Earnings Classification ($000)	July 30, 2016		August 1, 2015		July 30, 2016		August 1, 2015
Cost of goods sold	$	8,278	$	7,420	$	16,108	$	14,483
Selling, general and administrative	10,212		8,174		20,098		15,398
Total	$	18,490	$	15,594	$	36,206	$	29,881

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 six month periods ended July 30, 2016 and August 1, 2015, shares purchased by the Company for tax withholding totaled 45,063 and 682,060 and 33,705 and 1,206,903 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 July 30, 2016, shares related to unvested restricted stock and performance share awards totaled 5.4 million shares. A summary of restricted stock and performance share award activity for the six month period ended July 30, 2016 is presented below:

(000, except per share data)	Number of shares		Weighted average grant date fair value
Unvested at January 30, 2016	6,104		$	34.87
Awarded	1,204		56.34
Released	(1,770	)	27.57
Forfeited	(130	)	35.89
Unvested at July 30, 2016	5,408		$	42.31

The unamortized compensation expense at July 30, 2016 was $118.9 million which is expected to be recognized over a weighted-average remaining period of 2.2 years. The unamortized compensation expense at August 1, 2015 was $110.7 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 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 six month period ended July 30, 2016 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 30, 2016	310,066		$	7.34
Granted	—		—
Exercised	(254,674	)	7.17
Forfeited	—		—
Outstanding at July 30, 2016, all vested	55,392		$	8.12	0.74	$	2,975

No stock options were granted during the six month periods ended July 30, 2016 and August 1, 2015.

As of July 30, 2016, the 55,392 options outstanding and exercisable had a weighted average exercise price of $8.12 and a weighted average remaining contractual life of 0.74 years. These options have an exercise price range of $6.35 to $8.19.