Share-Based Plans

3 Months Ended

Apr. 28, 2012

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

SHARE-BASED PLANS

SHARE-BASED PLANS

We have issued nonqualified stock options and restricted stock awards under our shareholder-approved equity compensation plans.  Our restricted stock awards, as described below and in note 7 to the consolidated financial statements in our 2011 Form 10-K, are expensed and reported as nonvested shares.  We recognized share-based compensation expense of $8.1 million and $6.8 million in the first quarter of 2012 and the first quarter of 2011, respectively.

The weighted-average fair value of stock options granted and assumptions used in the model to estimate the fair value of stock options granted during each of the respective periods were as follows:

	First Quarter
	2012			2011
Weighted-average fair value of stock options granted	$	15.28		$	14.55
Risk-free interest rate	0.7		%	1.8		%
Expected life (years)	4.2			4.2
Expected volatility	40.9		%	41.7		%
Expected annual forfeiture rate	3.0		%	1.5		%

The following table summarizes stock option activity for the first quarter of 2012:

	Number of Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (000's)
Outstanding stock options at January 28, 2012	3,676,423		$	28.36
Granted	902,000		43.87
Exercised	(1,345,525	)	23.97
Forfeited	(67,325	)	37.06
Outstanding stock options at April 28, 2012	3,165,573		$	34.46	5.2	$	17,625
Vested or expected to vest at April 28, 2012	2,987,949		$	34.26	5.1	$	17,098
Exercisable at April 28, 2012	1,096,447		$	26.08	3.7	$	12,891

The stock options granted in the first quarter of 2012 vest in equal amounts on the first four anniversaries of the grant date and have a contractual term of seven years.  The number of stock options expected to vest was based on our annual forfeiture rate assumption.

The following table summarizes the nonvested restricted stock awards activity for the first quarter of 2012:

	Number of Shares		Weighted Average Grant-Date Fair Value Per Share
Outstanding nonvested restricted stock at January 28, 2012	741,289		$	39.40
Granted	525,800		43.85
Vested	(454,800	)	38.79
Forfeited	(6,400	)	39.97
Outstanding nonvested restricted stock at April 28, 2012	805,889		$	42.65

The nonvested restricted stock awards granted in the first quarter of 2012 (other than the award granted to our Chairman, CEO and President, Steven S. Fishman) vest if certain financial performance objectives are achieved. If we meet a threshold financial performance objective and the grantee remains employed by us, the restricted stock will vest on the opening of our first trading window five years after the grant date of the award. If we meet a higher financial performance objective and the grantee remains employed by us, the restricted stock will vest on the first trading day after we file our Annual Report on Form 10-K with the SEC for the fiscal year in which the higher objective is met.

On the grant date, we estimated a three-year period for vesting of the nonvested restricted stock awards granted in 2012 based on the projected achievement of the higher financial performance objective.

The nonvested restricted stock award granted to Mr. Fishman in the first quarter of 2012 vests if we achieve a corporate financial goal for 2012 and he is employed by us on March 31, 2013. If either of the conditions is not achieved, the nonvested restricted stock award is forfeited. If both of the conditions are achieved, Mr. Fishman's 2012 nonvested restricted stock will vest on the later of 1) the first trading day after we file with the SEC our Annual Report on Form 10-K for 2012 or 2) March 31, 2013.

The following activity occurred under our share-based plans during the respective periods shown:

	First Quarter
(in thousands)	2012		2011
Total intrinsic value of stock options exercised	$	28,122	$	3,167
Total fair value of restricted stock vested	21,103		10,898

The total unearned compensation cost related to all share-based awards outstanding at April 28, 2012 was approximately $50.3 million.  This compensation cost is expected to be recognized through April 2016 based on existing vesting terms with the weighted-average remaining expense recognition period being approximately 2.0 years from April 28, 2012.