Stock-Based Compensation

3 Months Ended

Apr. 30, 2016

Stock-based compensation. For the three month periods ended April 30, 2016 and May 2, 2015, the Company recognized stock-based compensation expense as follows:



	Three Months Ended
($000)	April 30, 2016		May 2, 2015
Restricted stock	$	9,065	$	8,573
Performance awards	7,949		5,106
Employee stock purchase plan	702		609
Total	$	17,716	$	14,288

Total stock-based compensation recognized in the Company's Condensed Consolidated Statements of Earnings for the three month periods ended April 30, 2016 and May 2, 2015 is as follows:



	Three Months Ended
Statements of Earnings Classification ($000)	April 30, 2016		May 2, 2015
Cost of goods sold	$	7,830	$	7,063
Selling, general and administrative	9,886		7,225
Total	$	17,716	$	14,288

Restricted stock. The Company grants shares of restricted stock or restricted stock units to directors, officers, and key employees. The market value of shares of restricted stock and of the stock underlying restricted stock units at the date of grant is amortized to expense over the vesting period of generally three to five years.

During the three month periods ended April 30, 2016 and May 2, 2015, shares purchased by the Company for tax withholding totaled 636,997 and 1,173,198, respectively, and are considered treasury shares which are available for reissuance.

Performance shares. The Company has a performance share award program for senior executives. A performance share award represents a right to receive shares of restricted stock or restricted stock units on a specified settlement date based on the Company’s attainment of a profitability-based performance goal during the performance period, which is the Company’s fiscal year. If attained, the restricted stock or units then vest over a service period, generally two to three years from the date the performance award was granted. The release of shares related to restricted stock units earned are deferred generally for one year from the date earned.

As of April 30, 2016, shares related to unvested restricted stock and performance share awards totaled 5.6 million shares. A summary of restricted stock and performance share award activity for the three month period ended April 30, 2016 is presented below:



(000, except per share data)	Number of shares		Weighted average grant date fair value
Unvested at January 30, 2016	6,104		$	34.87
Awarded	1,154		56.41
Released	(1,575	)	26.99
Forfeited	(81	)	34.09
Unvested at April 30, 2016	5,602		$	41.82

The unamortized compensation expense at April 30, 2016 was $130.2 million which is expected to be recognized over a weighted-average remaining period of 2.4 years. The unamortized compensation expense at May 2, 2015 was $120.9 million, which was expected to be recognized over a weighted-average remaining period of 2.3 years.

Employee stock purchase plan. Under the Employee Stock Purchase Plan (“ESPP”), eligible employees participating in the quarterly offering period can choose to spend up to the lesser of 10% of their annual base earnings or the IRS annual share purchase limit of $25,000 in aggregate market value to purchase the Company’s common stock each year. The purchase price of the stock is 85% of the closing market price on the date of purchase. Purchases occur on on the last trading day of each calendar quarter. The Company recognizes expense for ESPP purchase rights equal to the value of the 15% discount given on the purchase date.

Stock option activity. A summary of the stock option activity for the three month period ended April 30, 2016 is presented below:



(000, except per share data)	Number of shares		Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
Outstanding at January 30, 2016	310		$	7.34
Granted	—		—
Exercised	(210	)	7.26
Forfeited	—		—
Outstanding at April 30, 2016, all vested	100		$	7.52	0.59	$	4,928

No stock options were granted during the three month periods ended April 30, 2016 and May 2, 2015.

The following table summarizes information about the weighted average remaining contractual life (in years) and the weighted average exercise prices for stock options both outstanding and exercisable as of April 30, 2016 (number of shares in thousands):



					Options outstanding and exercisable
Exercise price range					Number of shares	Remaining life	Exercise price
$	6.08	to	$	6.35	8	0.34	$	6.22
6.89		to	6.89		37	0.05	6.89
7.66		to	8.19		55	1.00	8.13
$	6.08	to	$	8.19	100	0.59	$	7.52

- 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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