Stock-Based Compensation

9 Months Ended

Oct. 29, 2016

Stock-based compensation. For the three and nine month periods ended October 29, 2016 and October 31, 2015, the Company recognized stock-based compensation expense as follows:



	Three Months Ended				Nine Months Ended
($000)	October 29, 2016		October 31, 2015		October 29, 2016		October 31, 2015
Restricted stock	$	10,108	$	9,449	$	28,657	$	27,417
Performance awards	9,423		5,553		25,661		16,195
Employee stock purchase plan	753		690		2,171		1,961
Total	$	20,284	$	15,692	$	56,489	$	45,573

Total stock-based compensation recognized in the Company's Condensed Consolidated Statements of Earnings for the three and nine month periods ended October 29, 2016 and October 31, 2015 is as follows:



	Three Months Ended				Nine Months Ended
Statements of Earnings Classification ($000)	October 29, 2016		October 31, 2015		October 29, 2016		October 31, 2015
Cost of goods sold	$	9,569	$	7,342	$	25,677	$	21,824
Selling, general and administrative	10,715		8,350		30,812		23,749
Total	$	20,284	$	15,692	$	56,489	$	45,573

Restricted stock. The Company grants shares of restricted stock to directors, officers, and key employees. The market value of shares of restricted stock 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 29, 2016 and October 31, 2015, shares purchased by the Company for tax withholding totaled 55,831 and 737,891 and 71,893 and 1,278,796 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 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 then vests over a service period, generally two to three years from the date the performance award was granted.

As of October 29, 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 nine month period ended October 29, 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	1,325		56.92
Released	(1,897	)	27.80
Forfeited	(148	)	37.34
Unvested at October 29, 2016	5,384		$	43.04

The unamortized compensation expense at October 29, 2016 was $112.8 million which is expected to be recognized over a weighted-average remaining period of 2.1 years. The unamortized compensation expense at October 31, 2015 was $105.1 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 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 29, 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	(261,502	)	7.18
Forfeited	—		—
Outstanding at October 29, 2016, all vested	48,564		$	8.19	0.57	$	2,627

No stock options were granted during the nine month periods ended October 29, 2016 and October 31, 2015.

As of October 29, 2016, the outstanding and exercisable options to purchase 48,564 shares of common stock had a weighted average exercise price of $8.19 and a weighted average remaining contractual life of 0.57 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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