Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation Plans

v3.10.0.1
Share-Based Compensation Plans
9 Months Ended
Nov. 03, 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 nine months ended November 3, 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

 

627,770

 

254,895

 

 

27.44

 

 

28.33

 

Vested(1)

 

(592,025)

 

(131,074)

 

 

21.04

 

 

23.45

 

Forfeited

 

(151,398)

 

(730,623)

 

 

19.45

 

 

21.84

 

Non-Vested at November 3, 2018

 

899,036

 

386,829

 

$

23.26

 

$

19.68

 


(1)

Includes 264,794 shares relinquished for tax payments related to vested DSUs for the nine months ended November 3, 2018.

 

As of November 3, 2018, we have unrecognized compensation expense related to non-vested DSUs of $18.8 million, which is expected to be recognized over a weighted-average period of 1.5 years.

 

Stock Options

 

The following table summarizes the activity of stock options for the nine months ended November 3, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

Number of

 

Average

 

 

    

Shares

    

Exercise Price

 

Outstanding at February 3, 2018

 

1,527,176

 

$

21.97

 

Granted

 

232,430

 

 

28.09

 

Exercised

 

(256,111)

 

 

19.22

 

Forfeited

 

(210,327)

 

 

16.42

 

Expired

 

(41,096)

 

 

51.18

 

Outstanding at November 3, 2018

 

1,252,072

 

$

23.64

 

Exercisable at November 3, 2018

 

676,059

 

$

28.33

 

 

The weighted-average grant date fair value of the 232,430 stock options granted during the nine months ended November 3, 2018 was $10.29 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 nine months ended November 3, 2018:

 

 

 

 

 

 

 

For the Nine Months Ended

 

 

 

November 3,

 

 

    

2018

 

Risk-free interest rate

 

2.70%

 

Expected lives

 

5.0 years

 

Dividend yield

 

4.21%

 

Expected volatility

 

56.55%

 

 

As of November 3, 2018, we have unrecognized compensation expense related to non-vested stock options of $2.5 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 November 3, 2018, the liability associated with the cash settled awards was $3.9 million with $2.5 million recorded in accrued expenses and other current liabilities and $1.4 million recorded in other liabilities in the condensed consolidated balance sheets.

 

The following table summarizes the activity of cash settled awards for the nine months ended November 3, 2018 (in thousands):

 

 

 

 

 

 

 

Cash Settled Awards

Non-Vested at February 3, 2018

 

$

8,353

Granted

 

 

 —

Vested

 

 

(2,677)

Forfeited

 

 

(497)

Non-Vested at November 3, 2018

 

$

5,179

 

As of November 3, 2018, we have unrecognized compensation expense related to non-vested cash settled awards of $2.5 million, which is expected to be recognized over a weighted-average period of 1.2 years.

 

Share-Based Compensation Expense

 

Share-based compensation expense, including cash settled awards, recognized for the three and nine months ended November 3, 2018 was $3.0 million and $14.9 million, respectively, of which $0.7 million, net of the impact of forfeited awards, was related to the retirement of our former Chief Executive Officer. Share-based compensation expense recognized for the three and nine months ended October 28, 2017 was $8.2 million and $17.2 million, respectively.