Stock-Based Compensation

3 Months Ended

Apr. 29, 2023

Share-Based Payment Arrangement [Abstract]

For the three month periods ended April 29, 2023 and April 30, 2022, the Company recognized stock-based compensation expense as follows:


	Three Months Ended
($000)	April 29, 2023		April 30, 2022
Restricted stock	$	21,493	$	20,213
Performance awards	10,484		14,813
Employee stock purchase plan	1,086		1,045
Total	$	33,063	$	36,071

Total stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Earnings for the three month periods ended April 29, 2023 and April 30, 2022 is as follows:


	Three Months Ended
Statements of Earnings Classification ($000)	April 29, 2023		April 30, 2022
Cost of goods sold	$	17,325	$	18,546
Selling, general and administrative	15,738		17,525
Total	$	33,063	$	36,071

The tax benefits related to stock-based compensation expense for the three month periods ended April 29, 2023 and April 30, 2022 were $7.0 million and $7.4 million, respectively.

Restricted stock awards. 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 restricted stock units at the date of grant is amortized to expense over the vesting period of generally three to five years.

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 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 three years from the date the performance award was granted.

As of April 29, 2023, shares related to unvested restricted stock, restricted stock units, and performance share awards totaled 4.2 million shares. A summary of restricted stock, restricted stock units, and performance share award activity for the three month period ended April 29, 2023, is presented below:


(000, except per share data)	Number of shares	Weighted-average grant date fair value
Unvested at January 28, 2023	3,943	$	99.69
Awarded	1,144	109.05
Released	(896)	94.20
Forfeited	(26)	101.35
Unvested at April 29, 2023	4,165	$	103.43

The unamortized compensation expense at April 29, 2023 was $240.4 million which is expected to be recognized over a weighted-average remaining period of 2.4 years. The unamortized compensation expense at April 30, 2022 was $261.6 million which was expected to be recognized over a weighted-average remaining period of 2.4 years.

During the three month periods ended April 29, 2023 and April 30, 2022, shares purchased by the Company for tax withholding totaled 367,286 and 408,465, respectively, and are considered treasury shares which are available for reissuance.

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.