Share-Based Compensation

9 Months Ended

Oct. 29, 2022

Share-based Payment Arrangement [Abstract]

Financial statement impact

The following table details share-based compensation expense and the related income tax impacts for the thirteen and thirty-nine weeks ended October 29, 2022 and October 30, 2021:


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
(in thousands)	October 29, 2022		October 30, 2021		October 29, 2022		October 30, 2021
Share-based compensation expense	$	7,310	$	7,332	$	23,426	$	22,269
Income tax benefit associated with share-based compensation expense recognized	635		806		2,615		2,492

The following table details discrete income tax benefits and charges related to share-based compensation awards during the thirteen and thirty-nine weeks ended October 29, 2022 and October 30, 2021:


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
(in thousands)	October 29, 2022		October 30, 2021		October 29, 2022		October 30, 2021
Income tax discrete (charges) benefits realized for tax deductions related to the issuance of shares	$	(29)	$	150	$	1,970	$	4,166
Income tax discrete (charges) benefits realized upon cancellation of stock appreciation rights	(10)		—		(213)		(3)
Total income tax discrete (charges) benefits related to share-based compensation awards	$	(39)	$	150	$	1,757	$	4,163

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 thirty-nine weeks ended October 29, 2022 and October 30, 2021:


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
(in thousands)	October 29, 2022		October 30, 2021		October 29, 2022		October 30, 2021
Employee tax withheld upon issuance of shares (1)	$	426	$	984	$	14,432	$	13,044

(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 thirty-nine weeks ended October 29, 2022:


	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 29, 2022	2,532,240	$	17.16	340,149	$	27.08	680,184	$	22.81
Granted	983,139	28.73		185,197	30.24		92,603	41.60
Adjustments for performance achievement	—	—		5,668	23.05		18,881	36.24
Vested	(927,346)	18.01		(194,465)	23.05		(113,284)	36.24
Forfeited	(136,982)	20.37		—	—		(16,247)	16.24
Unvested at October 29, 2022 (1)	2,451,051	$	21.30	336,549	$	31.08	662,137	$	23.68

(1) 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. Unvested shares related to restricted stock units with performance-based and market-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 over which these costs are expected to be recognized for restricted stock units as of October 29, 2022:


(in thousands)	Service-based Restricted Stock Units		Performance-based Restricted Stock Units		Market-based Restricted Stock Units
Unrecognized compensation cost	$	39,040	$	—	$	15,602
Remaining weighted-average period cost is expected to be recognized (years)	1.3		0.0		0.9

Additional information pertaining to restricted stock units for the thirty-nine weeks ended October 29, 2022 and October 30, 2021 follows:


(in thousands)	October 29, 2022		October 30, 2021
Service-based restricted stock units:
Total grant date fair value of awards granted	$	28,246	$	23,760
Total grant date fair value of awards vested	16,702		13,232

Performance-based restricted stock units:
Total grant date fair value of awards granted	5,600		5,059
Total grant date fair value of awards vested	4,482		—

Market-based restricted stock units:
Total grant date fair value of awards granted	3,852		4,492
Total grant date fair value of awards vested	4,105		3,390

The weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during the thirty-nine weeks ended October 29, 2022 and October 30, 2021 were as follows:


	October 29, 2022			October 30, 2021
Grant date market price	$	30.24		$	36.15
Fair value	41.60			56.99

Price volatility	66		%	65		%
Expected term (years)	2.8			2.5
Risk-free interest rate	2.5		%	0.3		%
Dividend yield	—			—
Average volatility of peer companies	72.3			76.0
Average correlation coefficient of peer companies	0.5150			0.5130

Stock appreciation rights

The following table summarizes stock appreciation rights activity for the thirty-nine weeks ended October 29, 2022:


	Number of Underlying Shares	Weighted-Average Exercise Price		Aggregate Intrinsic Value		Weighted-Average Remaining Contractual Life (years)
Outstanding at January 29, 2022	236,139	$	32.55


Forfeited or expired	(37,800)	48.72
Outstanding at October 29, 2022	198,339	$	29.47	$	—	1.9
Stock appreciation rights exercisable at October 29, 2022	198,339	$	29.47	$	—	1.9

No stock appreciation rights were exercised during the thirty-nine weeks ended October 29, 2022 or October 30, 2021.