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Share-Based Compensation
 6 Months Ended
Aug. 01, 2020
Share-based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION

Financial statement impact

The following table details share-based compensation expense and the related income tax impacts for the thirteen and twenty-six weeks ended August 1, 2020 and August 3, 2019:
 
Thirteen Weeks Ended
 
Twenty-six Weeks Ended
(in thousands)
August 1, 2020

 
August 3, 2019

 
August 1, 2020

 
August 3, 2019

Share-based compensation expense
$
3,744

 
$
36

 
$
8,906

 
$
2,668

Income tax (expense) benefit associated with share-based compensation expense recognized (1)
$
—

 
$
(195
)
 
$
—

 
$
355


(1) 
No income tax benefit was recognized related to share-based compensation expense during the thirteen and twenty-six weeks ended August 1, 2020 due to the U.S. being a loss jurisdiction.

The following table details discrete income tax benefits and charges related to share-based compensation awards during the thirteen and twenty-six weeks ended August 1, 2020 and August 3, 2019:
 
Thirteen Weeks Ended
 
Twenty-six Weeks Ended
(in thousands)
August 1, 2020

 
August 3, 2019

 
August 1, 2020

 
August 3, 2019

Income tax discrete (charges) benefits realized for tax deductions related to the issuance of shares (1)
$
—

 
$
(70
)
 
$
—

 
$
1,169

Income tax discrete charges realized upon cancellation of stock appreciation rights (1)
—

 
—

 
—

 
(165
)
Total income tax discrete (charges) benefits related to share-based compensation awards
$
—

 
$
(70
)
 
$
—

 
$
1,004


(1) 
No income tax benefits or charges related to these items were recognized during the thirteen and twenty-six weeks ended August 1, 2020 due to the U.S. being a loss jurisdiction.
The following table details the amount of employee tax withheld by the Company upon the issuance of shares associated with restricted stock units vesting and the exercise of stock appreciation rights for the thirteen and twenty-six weeks ended August 1, 2020 and August 3, 2019:
 
Thirteen Weeks Ended
 
Twenty-six Weeks Ended
(in thousands)
August 1, 2020

 
August 3, 2019

 
August 1, 2020

 
August 3, 2019

Employee tax withheld upon issuance of shares (1)
$
93

 
$
150

 
$
5,416

 
$
6,438

(1) 
Classified within other financing activities on the Condensed Consolidated Statements of Cash Flows.

Restricted stock units

The following table summarizes activity for restricted stock units for the twenty-six weeks ended August 1, 2020:
 
Service-based Restricted
Stock Units
 
Performance-based Restricted
Stock Units
 
Market-based Restricted
Stock Units
 
Number of 
Underlying
Shares (1)
 
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 February 1, 2020
1,676,831

 
$
18.68

 
747,056

 
$
15.11

 
421,784

 
$
23.05

Granted
1,814,294

 
7.58

 
—

 
—

 
—

 
—

Adjustments for performance achievement
—

 
—

 
38,381

 
11.37

 
134,122

 
11.79

Vested
(726,341
)
 
17.67

 
(481,304
)
 
9.63

 
(350,447
)
 
11.79

Forfeited
(41,100
)
 
15.73

 
(6,917
)
 
22.80

 
(3,485
)
 
35.61

Unvested at August 1, 2020 (2)
2,723,684

 
$
11.59

 
297,216

 
$
22.43

 
201,974

 
$
34.89


(1) 
Includes 79,028 unvested restricted stock units as of August 1, 2020, subject to vesting requirements related to the achievement of certain performance metrics, such as operating income and net income, for the fiscal year immediately preceding the vesting date. Holders of these restricted stock units have the opportunity to earn back one or more installments of the award if the cumulative performance requirements are met in a subsequent year.
(2) 
Unvested shares related to restricted stock units with performance-based and market-based vesting conditions are reflected at 100% of their target vesting amount in the table above. Certain unvested shares related to restricted stock units with performance-based vesting conditions can be achieved at up to 200% of their target vesting amount.

The following table details unrecognized compensation cost and the remaining weighted-average period these costs are expected to be recognized for restricted stock units as of August 1, 2020:
(in thousands)
Service-based Restricted
Stock Units
 
Performance-based Restricted
Stock Units
 
Market-based Restricted
Stock Units
Unrecognized compensation cost
$
26,520

 
$
—

 
$
2,567

Remaining weighted-average period cost is expected to be recognized (years)
1.3

 
0.0

 
0.8


Additional information pertaining to restricted stock units for the twenty-six weeks ended August 1, 2020 and August 3, 2019 follows:
(in thousands)
August 1, 2020

 
August 3, 2019

Service-based restricted stock units:
 
 
 
Total grant date fair value of awards granted
$
13,752

 
$
16,052

Total grant date fair value of awards vested
$
12,834

 
$
12,576

 
 
 
 
Performance-based restricted stock units:
 
 
 
Total grant date fair value of awards granted
$
—

 
$
5,379

Total grant date fair value of awards vested
$
4,635

 
$
—

 
 
 
 
Market-based restricted stock units:
 
 
 
Total grant date fair value of awards granted
$
—

 
$
4,176

Total grant date fair value of awards vested
$
4,132

 
$
511

No market-based restricted stock units were granted during the twenty-six weeks ended August 1, 2020. The weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during the twenty-six weeks ended August 3, 2019 were as follows:
 
August 3, 2019

Grant date market price
$
25.34

Fair value
$
36.24

Assumptions:
 
Price volatility
57
%
Expected term (years)
2.9

Risk-free interest rate
2.2
%
Dividend yield
3.2
%
Average volatility of peer companies
40.0
%
Average correlation coefficient of peer companies
0.2407


Stock appreciation rights

The following table summarizes stock appreciation rights activity for the twenty-six weeks ended August 1, 2020:
 
Number of
Underlying
Shares

 
Weighted-Average
Exercise Price

 
Aggregate
Intrinsic Value

 
Weighted-Average
Remaining
Contractual Life (years)
Outstanding at February 1, 2020
796,725

 
$
40.06

 
 
 
 
Granted
—

 
—

 
 
 
 
Exercised
—

 
—

 
 
 
 
Forfeited or expired
(382,225
)
 
47.87

 
 
 
 
Outstanding at August 1, 2020
414,500

 
$
32.86

 
$
—

 
3.7
Stock appreciation rights exercisable at August 1, 2020
414,500

 
$
32.86

 
$
—

 
3.7
Stock appreciation rights expected to become exercisable in the future as of August 1, 2020
—

 
$
—

 
$
—

 
0.0

No stock appreciation rights were exercised during the twenty-six weeks ended August 1, 2020. Additional information pertaining to stock appreciation rights for the twenty-six weeks ended August 3, 2019 follows:
(in thousands)
August 3, 2019

Total grant date fair value of awards exercised
$
586