XML 27 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Share-Based Plans
 3 Months Ended
May 04, 2013
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 2012 Form 10-K, are expensed and reported as nonvested shares.  We recognized share-based compensation expense of $4.6 million and $8.1 million in the first quarter of 2013 and the first quarter of 2012, 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

2013
2012
Weighted-average fair value of stock options granted
$
12.14

$
15.28

Risk-free interest rate
0.7
%
0.7
%
Expected life (years)
4.2

4.2

Expected volatility
42.5
%
40.9
%
Expected annual forfeiture rate
3.0
%
3.0
%


The following table summarizes stock option activity for the first quarter of 2013:

Number of Options
Weighted Average Exercise Price Per Share
Weighted Average Remaining Contractual Term (years)
Aggregate Intrinsic Value (000's)
Outstanding stock options at February 2, 2013
3,029,086

$
34.49



Granted
851,000

35.72



Exercised
(55,420
)
16.24



Forfeited
(78,675
)
37.72



Outstanding stock options at May 4, 2013
3,745,991

$
34.97

4.8
$
15,650

Vested or expected to vest at May 4, 2013
3,573,069

$
34.77

4.8
$
15,527

Exercisable at May 4, 2013
1,718,489

$
30.33

3.6
$
14,110



The stock options granted in the first quarter of 2013 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 2013:

Number of Shares
Weighted Average Grant-Date Fair Value Per Share
Outstanding nonvested restricted stock at February 2, 2013
783,609

$
42.25

Granted
339,500

35.54

Vested
—

—

Forfeited
(248,300
)
43.75

Outstanding nonvested restricted stock at May 4, 2013
874,809

$
39.22



The nonvested restricted stock awards granted in the first quarter of 2013 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 2013 based on the projected achievement of the higher financial performance objective.

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

First Quarter
(In thousands)
2013
2012
Total intrinsic value of stock options exercised
$
1,040

$
28,122

Total fair value of restricted stock vested
—

21,103



The total unearned compensation cost related to all share-based awards outstanding at May 4, 2013 was approximately $49.4 million.  This compensation cost is expected to be recognized through March 2017 based on existing vesting terms with the weighted-average remaining expense recognition period being approximately 2.3 years from May 4, 2013.