Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation Plans

v3.10.0.1
Share-Based Compensation Plans
6 Months Ended
Aug. 04, 2018
Share-Based Compensation Plans  
Share-Based Compensation Plans

12.  Share-Based Compensation Plans

 

For a discussion of our share-based compensation plans, please see Note 13 in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018.

 

 

Non-Vested Deferred Stock Units and Performance Units

 

The following table summarizes the activity of time-based and performance-based awards (collectively, "DSUs") for the six months ended August 4, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average

 

 

 

Units

 

Grant-Date Fair Value

 

 

 

Time-

 

Performance-

 

Time-

 

Performance-

 

 

    

Based

    

Based

    

Based

    

Based

 

Non-Vested at February 3, 2018

 

1,014,689

 

993,631

 

$

18.13

 

$

19.55

 

Granted

 

485,715

 

242,509

 

 

28.42

 

 

28.54

 

Vested(1)

 

(497,676)

 

(131,074)

 

 

21.14

 

 

23.45

 

Forfeited

 

(61,799)

 

(90,604)

 

 

19.04

 

 

47.46

 

Non-Vested at August 4, 2018

 

940,929

 

1,014,462

 

$

21.79

 

$

18.70

 


(1)

Includes 224,497 shares relinquished for tax payments related to vested DSUs for the six months ended August 4, 2018.

 

As of August 4, 2018, we have unrecognized compensation expense related to non-vested DSUs of $28.6 million, which is expected to be recognized over a weighted-average period of 1.8 years.

 

Stock Options

 

The following table summarizes the activity of stock options for the six months ended August 4, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

Number of

 

Average

 

 

    

Shares

    

Exercise Price

 

Outstanding at February 3, 2018

 

1,527,176

 

$

21.97

 

Granted

 

208,769

 

 

28.53

 

Exercised

 

(144,583)

 

 

22.60

 

Forfeited

 

(44,703)

 

 

14.44

 

Expired

 

(8,087)

 

 

49.18

 

Outstanding at August 4, 2018

 

1,538,572

 

$

22.87

 

Exercisable at August 4, 2018

 

801,720

 

$

27.78

 

 

The weighted-average grant date fair value of the 208,769 stock options granted during the six months ended August 4, 2018 was $10.31 per share. The following table summarizes the weighted-average assumptions used to fair value the stock options at the date of grant using the Black-Scholes option model for the six months ended August 4, 2018:

 

 

 

 

 

 

 

For the Six Months Ended

 

 

 

August 4,

 

 

    

2018

 

Risk-free interest rate

 

2.67%

 

Expected lives

 

5.0 years

 

Dividend yield

 

4.35%

 

Expected volatility

 

56.35%

 

 

As of August 4, 2018, we have unrecognized compensation expense related to non-vested stock options of $3.7 million, which is expected to be recognized over a weighted-average period of 1.5 years.

 

Cash Settled Awards

 

During 2017, we granted stock-based awards to certain employees, which vest over a period of three years, and will be settled in cash ("cash settled awards").  The fair value of the cash settled awards at each reporting period is based on the price of our common stock and includes a market condition.  The fair value of the cash settled awards will be remeasured at each reporting period until the awards are settled.  Cash settled awards are classified as liabilities in the condensed consolidated balance sheets.  At August 4, 2018, the liability associated with the cash settled awards was $3.2 million with $2.1 million recorded in accrued expenses and other current liabilities and $1.1 million recorded in other liabilities in the condensed consolidated balance sheets.

 

The following table summarizes the activity of cash settled awards for the six months ended August 4, 2018 (in thousands):

 

 

 

 

 

 

 

Cash Settled Awards

Non-Vested at February 3, 2018

 

$

8,353

Granted

 

 

 —

Vested

 

 

(2,613)

Forfeited

 

 

(304)

Non-Vested at August 4, 2018

 

$

5,436

 

As of August 4, 2018, we have unrecognized compensation expense related to non-vested cash settled awards of $3.2 million, which is expected to be recognized over a weighted-average period of 1.4 years.

 

Share-Based Compensation Expense

 

Share-based compensation expense, including cash settled awards, recognized for the three and six months ended August 4, 2018 was $5.5 million and $11.9 million, respectively. Share-based compensation expense recognized for the three and six months ended July 29, 2017 was $4.2 million and $9.0 million, respectively.