Stock-Based Compensation

Stock-based compensation. For the three and six month periods ended August 4, 2018 and July 29, 2017, the Company recognized stock-based compensation expense as follows:



	Three Months Ended				Six Months Ended
($000)	August 4, 2018		July 29, 2017		August 4, 2018		July 29, 2017
Restricted stock	$	12,428	$	11,019	$	23,936	$	21,720
Performance awards	10,487		10,670		21,911		19,453
Employee stock purchase plan	905		792		1,733		1,546
Total	$	23,820	$	22,481	$	47,580	$	42,719

Total stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Earnings for the three and six month periods ended August 4, 2018 and July 29, 2017, is as follows:



	Three Months Ended				Six Months Ended
Statements of Earnings Classification ($000)	August 4, 2018		July 29, 2017		August 4, 2018		July 29, 2017
Cost of goods sold	$	11,011	$	10,316	$	22,047	$	20,111
Selling, general and administrative	12,809		12,165		25,533		22,608
Total	$	23,820	$	22,481	$	47,580	$	42,719

The tax benefits related to stock-based compensation expense for the three and six month periods ended August 4, 2018 were $5.0 million and $9.9 million, respectively. The tax benefits related to stock-based compensation expense for the three and six month periods ended July 29, 2017 were $7.8 million and $14.8 million, respectively.

Restricted stock awards. 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 six month periods ended August 4, 2018 and July 29, 2017, shares purchased by the Company for tax withholding totaled 78,151 and 661,379, and 69,934 and 646,747, respectively, and are considered treasury shares which are available for reissuance.

Performance share awards. 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 August 4, 2018, shares related to unvested restricted stock and performance share awards totaled 4.9 million shares. A summary of restricted stock and performance share award activity for the six month period ended August 4, 2018, is presented below:



(000, except per share data)	Number of shares		Weighted average grant date fair value
Unvested at February 3, 2018	5,483		$	51.19
Awarded	1,114		74.88
Released	(1,679	)	44.11
Forfeited	(56	)	59.21
Unvested at August 4, 2018	4,862		$	60.22

The unamortized compensation expense at August 4, 2018, was $148.3 million, which is expected to be recognized over a weighted-average remaining period of 2.2 years. The unamortized compensation expense at July 29, 2017, was $133.6 million, which was expected to be recognized over a weighted-average remaining period of 2.2 years.

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% 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. 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.