SHARE-BASED COMPENSATION

The Company recognized share-based compensation expense of $5.7 million and $16.7 million for the thirteen and thirty-nine weeks ended October 29, 2016, respectively, and $7.6 million and $21.7 million for the thirteen and thirty-nine weeks ended October 31, 2015, respectively. The Company also recognized tax benefits related to share-based compensation of $2.2 million and $6.3 million for the thirteen and thirty-nine weeks ended October 29, 2016, respectively, and $2.6 million and $7.4 million for the thirteen and thirty-nine weeks ended October 31, 2015, respectively.

Stock Options

The following table summarizes stock option activity for the thirty-nine weeks ended October 29, 2016:



	Number of Underlying Shares		Weighted-Average Exercise Price		Aggregate Intrinsic Value		Weighted-Average Remaining Contractual Life
Outstanding at January 30, 2016	271,000		$	63.05
Granted	—		—
Exercised	(2,000	)	22.87
Forfeited or expired	(79,200	)	31.53
Outstanding at October 29, 2016	189,800		$	76.62	$	—	0.9
Stock options exercisable at October 29, 2016	189,800		$	76.62	$	—	0.9

Stock Appreciation Rights

The following table summarizes stock appreciation rights activity for the thirty-nine weeks ended October 29, 2016:



	Number of Underlying Shares		Weighted-Average Exercise Price		Aggregate Intrinsic Value		Weighted-Average Remaining Contractual Life
Outstanding at January 30, 2016	5,301,115		$	45.02
Granted	—		—
Exercised	(10,483	)	22.45
Forfeited or expired	(1,194,207	)	37.27
Outstanding at October 29, 2016	4,096,425		$	47.43	$	—	3.0
Stock appreciation rights exercisable at October 29, 2016	3,524,010		$	50.69	$	—	2.1
Stock appreciation rights expected to become exercisable in the future as of October 29, 2016	502,927		$	27.60	$	—	8.1

As of October 29, 2016, there was $3.7 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock appreciation rights. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 13 months.

The grant date fair value of stock appreciation rights that vested during the thirty-nine weeks ended October 29, 2016 and October 31, 2015 was $4.1 million and $4.5 million, respectively.

Restricted Stock Units

The following table summarizes activity for restricted stock units for the thirty-nine weeks ended October 29, 2016:



	Service-based Restricted Stock Units				Performance-based Restricted Stock Units				Market-based Restricted Stock Units
	Number of Underlying Shares		Weighted- Average Grant Date Fair Value		Number of Underlying Shares		Weighted- Average Grant Date Fair Value		Number of Underlying Shares		Weighted- Average Grant Date Fair Value
Unvested at January 30, 2016	1,671,597		$	28.13	185,500		$	23.42	117,711		$	25.00
Granted	1,119,848		25.28		129,725		25.70		129,734		31.01
Adjustments for performance achievement	—		—		—		—		—		—
Vested	(603,789	)	30.37		(32,625	)	36.12		—		—
Forfeited	(236,871	)	26.75		(78,677	)	24.22		(62,553	)	31.91
Unvested at October 29, 2016	1,950,785		$	25.97	203,923		$	22.53	184,892		$	26.89

Fair value of both service-based and performance-based restricted stock units is calculated using the market price of the underlying common stock on the date of grant reduced for anticipated dividend payments on unvested shares. In determining fair value, the Company does not take into account performance-based vesting requirements. Performance-based vesting requirements are taken into account in determining the number of awards expected to vest. For market-based restricted stock units, fair value is calculated using a Monte Carlo simulation with the number of shares that ultimately vest dependent on the Company’s total stockholder return measured against the total stockholder return of a select group of peer companies over a three-year period. For an award with performance-based or market-based vesting requirements, the number of shares that ultimately vest can vary from 0% to 200% of target depending on the level of achievement of performance criteria. Unvested shares related to restricted stock units with performance-based vesting conditions are reflected at 100% of their target vesting amount in the table above.

Service-based restricted stock units are expensed on a straight-line basis over the total requisite service period, net of forfeitures. Performance-based restricted stock units subject to graded vesting are expensed on an accelerated attribution basis, net of forfeitures. Market-based restricted stock units without graded vesting features are expensed on a straight-line basis over the requisite service period, net of forfeitures.

As of October 29, 2016, there was $30.7 million, $1.3 million and $3.1 million of total unrecognized compensation cost, net of estimated forfeitures, related to service-based, performance-based and market-based restricted stock units, respectively. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 16 months, 15 months and 14 months for service-based, performance-based and market-based restricted stock units, respectively.

Additional information pertaining to restricted stock units for the thirty-nine weeks ended October 29, 2016 and October 31, 2015 follows:



(in thousands)	October 29, 2016		October 31, 2015
Service-based restricted stock units:
Total grant date fair value of awards granted	$	28,310	$	21,725
Total grant date fair value of awards vested	18,337		17,956

Performance-based restricted stock units:
Total grant date fair value of awards granted	$	3,334	$	2,278
Total grant date fair value of awards vested	1,178		1,861

Market-based restricted stock units:
Total grant date fair value of awards granted	$	4,023	$	2,158
Total grant date fair value of awards vested	—		—

The weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during the thirty-nine weeks ended October 29, 2016 and October 31, 2015 were as follows:



	October 29, 2016			October 31, 2015
Grant date market price	$	28.06		$	22.46
Fair value	$	31.01		$	19.04
Assumptions:
Price volatility	45		%	45		%
Expected term (years)	2.7			2.8
Risk-free interest rate	1.0		%	0.9		%
Dividend yield	3.0		%	3.5		%
Average volatility of peer companies	34.5		%	34.0		%
Average correlation coefficient of peer companies	0.3415			0.3288