Stock-Based Awards

12 Months Ended

Jan. 30, 2021

Share-based Payment Arrangement [Abstract]

We have outstanding stock-based awards under our 2003 Long-Term Incentive Plan, 2007 Non-Employee Directors Equity Plan, 2012 Long-Term Incentive Plan, and 2017 Non-Employee Directors Equity Plan (collectively, the “Plans”). No further awards will be granted under the 2003 Long-Term Incentive Plan or 2007 Non-Employee Directors Equity Plan. As of January 30, 2021, the total number of shares available for grant under the Plans was 838,212.

Stock-based compensation expense and the related tax benefit recognized during fiscal 2021, fiscal 2020, and fiscal 2019 were as follows (dollars in thousands):


	Fiscal Year Ended
	January 30, 2021		January 25, 2020		January 26, 2019
Stock-based compensation	$	12,771	$	10,034	$	20,187
Income tax effect of stock-based compensation	$	3,141	$	2,482	$	5,043

In addition, we realized approximately $0.5 million of net excess tax benefits during fiscal 2021, and $1.0 million of net tax deficiencies in fiscal 2020. We realized $0.2 million of net excess tax benefits during fiscal 2019, related to the vesting and exercise of share-based awards.

As of January 30, 2021, we had unrecognized compensation expense related to stock options, RSUs, and target Performance RSUs (based on the Company’s expected achievement of performance measures) of $1.6 million, $16.1 million, and $5.3 million, respectively. This expense will be recognized over a weighted-average number of years of 2.4, 2.6, and 1.1, respectively, based on the average remaining service periods for the awards. As of January 30, 2021, we may recognize an additional $2.9 million in compensation expense in future periods if the maximum number of Performance RSUs is earned based on certain performance measures being met.

The following table summarizes the valuation of stock options and restricted share units granted during fiscal 2021, fiscal 2020, and fiscal 2019, and the significant valuation assumptions:


	Fiscal Year Ended
	January 30, 2021			January 25, 2020			January 26, 2019
Weighted average fair value of RSUs granted	$	27.75		$	48.37		$	97.90
Weighted average fair value of Performance RSUs granted	$	25.15		$	45.94		$	106.19
Weighted average fair value of stock options granted	$	14.63		$	24.72		$	48.19
Stock option assumptions:
Risk-free interest rate	0.7		%	2.3		%	2.7		%
Expected life (in years)	9.4			8.4			6.3
Expected volatility	51.3		%	45.3		%	43.3		%
Expected dividends	—			—			—

Stock Options

The following table summarizes stock option award activity during fiscal 2021:


	Stock Options
	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In years)	Aggregate Intrinsic Value (In thousands)
Outstanding as of January 25, 2020	577,309	$	36.85
Granted	63,304	$	25.15
Options exercised	(295,650)	$	19.40
Canceled	—	$	—
Outstanding as of January 30, 2021	344,963	$	49.66	5.8	$	11,656

Exercisable options as of January 30, 2021	233,070	$	52.58	4.4	$	7,075

The total amount of exercisable options as of January 30, 2021 presented above reflects the approximate amount of options expected to vest. The aggregate intrinsic values presented above represent the total pre-tax intrinsic values (the difference between the Company’s closing stock price of $81.14 on the last trading day of fiscal 2021 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of fiscal 2021. The amount of aggregate intrinsic value will change based on the price of the Company’s common stock. The total intrinsic value of stock options exercised was $8.1 million, $1.8 million, and $5.7 million for fiscal 2021, fiscal 2020, and fiscal 2019, respectively. We received cash from the exercise of stock options of $5.7 million, $0.5 million, and $0.9 million during fiscal 2021, fiscal 2020, and fiscal 2019, respectively.

RSUs and Performance RSUs

The following table summarizes RSU and Performance RSU award activity during fiscal 2021:


	Restricted Stock
	RSUs			Performance RSUs
	Share Units	Weighted Average Grant Price		Share Units	Weighted Average Grant Price
Outstanding as of January 25, 2020	174,917	$	65.05	639,738	$	62.60
Granted	557,838	$	27.75	65,538	$	25.15
Share units vested	(66,620)	$	67.70	(17,134)	$	70.14
Forfeited or canceled	(17,774)	$	41.95	(262,798)	$	66.64
Outstanding as of January 30, 2021	648,361	$	33.29	425,344	$	54.03

The total number of granted Performance RSUs presented above consists of 32,769 target shares and 32,769 supplemental shares. During fiscal 2021, we canceled 167,095 target shares and 76,706 supplemental shares of Performance RSUs, as a result of performance criteria for attaining those shares being partially met for the applicable performance periods. Approximately 88,057 target shares and 74,024 supplemental shares outstanding as of January 30, 2021 will be canceled during the three months ending May 1, 2021 as a result of the fiscal 2021 performance period criteria being partially met. The total amount of Performance RSUs outstanding as of January 30, 2021 consists of 281,877 target shares and 143,467 supplemental shares.

The total fair value of restricted share units vested during fiscal 2021, fiscal 2020, and fiscal 2019 was $3.1 million, $6.7 million, and $15.3 million, respectively.