STOCK-BASED COMPENSATION

3 Months Ended

Apr. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

The following table summarizes the Company’s stock-based compensation expense (in thousands):

	Thirteen Weeks Ended
	April 30, 2016		May 2, 2015
Deferred Awards	$	2,306	$	3,217
Performance Awards	4,238		651
Total stock-based compensation expense (1)	$	6,544	$	3,868

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⁽¹⁾  During the First Quarter 2016 and the First Quarter 2015, approximately $0.6 million and $0.5 million, respectively, were included in cost of sales. All other stock-based compensation is included in selling, general & administrative expenses.

The Company recognized a tax benefit related to stock-based compensation expense of approximately $2.6 million and $1.5 million for the First Quarter 2016 and the First Quarter 2015, respectively.

Awards Granted During the First Quarter 2016

The Company granted Deferred Awards and Performance Awards to various executives and members of our Board of Directors during the First Quarter 2016. Awards were also granted in connection with new hires and contractual obligations. Generally, the Deferred Awards have a three year vesting period with one third of the award vesting annually. Generally, the Deferred Awards granted to the Board of Directors vest after one year. Performance Awards granted have a three-year performance period, and, if earned, vest upon completion of the three-year performance period. Depending on the final adjusted earnings per share achieved for the cumulative three-year performance period and adjusted operating margin expansion and adjusted return on invested capital achieved at the end of the performance period, the percentage of Target Shares earned range from 0% to 200%.

Changes in the Company’s Unvested Stock Awards during the First Quarter 2016

Deferred Awards

	Number of Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Unvested Deferred Awards, beginning of period	473		$	54.62
Granted	19		69.02
Vested	(45	)	50.02
Forfeited	(5	)	58.25
Unvested Deferred Awards, end of period	442		$	55.68

Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $11.7 million as of April 30, 2016, which will be recognized over a weighted average period of approximately 1.9 years.

Performance Awards

	Number of Shares (1)		Weighted Average Grant Date Fair Value
	(in thousands)
Unvested Performance Awards, beginning of period	375		$	61.37
Granted	96		79.05
Vested shares, including shares vested in excess of target	(44	)	46.34
Unvested Performance Awards, end of period	427		$	66.91

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⁽¹⁾  For those awards in which the performance period is complete, the number of unvested shares is based on actual shares that will vest upon completion of the service period. For those awards in which the performance period is not yet complete, the number of unvested shares is based on the participants earning their Target Shares at 100%. 

For those awards in which the performance period is not yet complete, the number of unvested shares in the table above is based on the participants earning their Target Shares at 100%; however, the cumulative expense recognized reflects changes in estimated adjusted earnings per share, adjusted operating margin expansion and adjusted return on invested capital as they occur. Total unrecognized stock-based compensation expense related to unvested Performance Awards approximated $24.9 million as of April 30, 2016, which will be recognized over a weighted average period of approximately 2.2 years.

Stock Options

At April 30, 2016, there were no unvested stock options.

Outstanding Stock Options

Changes in the Company’s outstanding stock options for the First Quarter 2016 were as follows:

	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in thousands)			(in years)	(in thousands)
Options outstanding, beginning of period	15	$	29.05	2.3	$	455
Exercised	—	—		N/A	—
Options outstanding and exercisable, end of period	15	$	29.05	2.0	$	455