STOCK-BASED COMPENSATION

9 Months Ended

Oct. 29, 2016

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

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



	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	October 29, 2016		October 31, 2015		October 29, 2016		October 31, 2015
Deferred Awards	$	2,202	$	2,429	$	6,629	$	8,123
Performance Awards	6,073		1,853		14,275		4,333
Total stock-based compensation expense ⁽¹⁾	$	8,275	$	4,282	$	20,904	$	12,456

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⁽¹⁾	During the Third Quarter 2016 and the Third Quarter 2015, approximately $1.1 million and $0.9 million, respectively, were included in cost of sales. During Year-To-Date 2016 and Year-To-Date 2015, approximately $2.6 million and $2.3 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 $8.3 million and $4.8 million for Year-To-Date 2016 and Year-To-Date 2015, respectively.

Awards Granted During Year-To-Date 2016

The Company granted Deferred Awards and Performance Awards to various executives and members of our Board of Directors during Year-To-Date 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 members of the Board of Directors vest after one year. Performance Awards granted during Year-To-Date 2016 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 and adjusted operating margin expansion achieved for the cumulative three-year performance period and adjusted return on invested capital achieved as of the end of fiscal 2018, the percentage of Target Shares earned range from 0% to 200%.

Changes in the Company’s Unvested Stock Awards during Year-To-Date 2016

Deferred Awards



	Number of Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Unvested Deferred Awards, beginning of period	473		$	54.62
Granted	184		71.63
Vested	(155	)	54.46
Forfeited	(26	)	63.44
Unvested Deferred Awards, end of period	476		$	60.78

Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $17.0 million as of October 29, 2016, which will be recognized over a weighted average period of approximately 2.0 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	204		75.19
Vested shares, including shares vested in excess of target	(54	)	48.26
Forfeited	(9	)	66.99
Unvested Performance Awards, end of period	516		$	68.11

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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 $39.4 million as of October 29, 2016, which will be recognized over a weighted average period of approximately 2.1 years.

Stock Options

At October 29, 2016, there were no unvested stock options.

Outstanding Stock Options

Changes in the Company’s outstanding stock options for Year-To-Date 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	(15	)	29.05		N/A	675
Options outstanding and exercisable, end of period	—		$	—	0.0	$	—

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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