7. Equity Awards

We maintain several equity incentive plans under which we may grant incentive stock options, nonqualified stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights to employees (including officers), non-employee directors and consultants.

We account for stock-based compensation by recording the estimated fair value of stock-based awards granted as compensation expense over the vesting period, net of estimated forfeitures. Stock-based compensation expense is attributed to earnings using an accelerated method for stock options and a straight-line method for restricted stock. We estimate forfeitures of stock-based awards based on historical experience and expected future activity.

The fair value of restricted stock awards is measured based on the closing price of our common stock on the date of grant. The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model. The following weighted-average assumptions were used to estimate the fair value of stock options granted:


	Six Months Ended
	August 2, 2014			August 3, 2013
Dividend yield		0.0	%		0.0	%
Volatility rate		63.7	%		66.4	%
Weighted-average expected life (in years)		6.3			6.3
Weighted-average risk-free interest rate		1.9	%		1.1	%
Weighted-average fair value per share of stock options granted	$	15.26		$	15.07

Total stock-based compensation expense is recognized on our condensed consolidated income statements as follows (in thousands):


	Three Months Ended				Six Months Ended
	August 2, 2014		August 3, 2013		August 2, 2014		August 3, 2013
Cost of goods sold	$	271	$	271	$	515	$	485
Selling, general and administrative expenses		887		1,381		1,591		2,680

Total stock-based compensation expense	$	1,158	$	1,652	$	2,106	$	3,165

At August 2, 2014, there was $7.9 million of total unrecognized compensation cost related to unvested stock options and restricted stock. This cost has a weighted-average recognition period of 1.2 years.

The following table summarizes restricted stock activity (in thousands except grant date weighted-average fair value):


	Restricted Stock			Grant Date Weighted- Average Fair Value		Intrinsic Value (1)
Outstanding at February 1, 2014		361		$	26.91
Granted		172		$	25.59
Vested		(150	)	$	26.36
Forfeited		(21	)	$	27.21

Outstanding at August 2, 2014		362		$	26.49	$	10,219

(1)	Intrinsic value for restricted stock is defined as the market value of the outstanding restricted stock on the last business day of the quarter.

The following table summarizes stock option activity (in thousands except grant date weighted-average exercise price and weighted-average remaining contractual life):


	Stock Options			Grant Date Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in Years)		Intrinsic Value (1)
Outstanding at February 1, 2014		691		$	19.86
Granted		31		$	25.49
Exercised		(185	)	$	15.57
Forfeited		(27	)	$	27.40

Outstanding at August 2, 2014		510		$	21.35		4.1	$	4,553

Exercisable at August 2, 2014		433		$	20.47		3.3	$	4,373

(1)	Intrinsic value for stock options is defined as the difference between the market price of our common stock on the last business day of the quarter and the weighted average exercise price of in-the-money options outstanding at the end of the quarter.