Share-Based Plans

3 Months Ended

May 01, 2021

Share-based Payment Arrangement [Abstract]

We have issued restricted stock units, PSUs, and PRSUs under our shareholder-approved equity compensation plans. We recognized share-based compensation expense of $11.9 million and $3.0 million in the first quarter of 2021 and the first quarter of 2020, respectively.

Non-vested Restricted Stock Units

The following table summarizes the non-vested restricted stock units activity for the first quarter of 2021:


	Number of Shares	Weighted Average Grant-Date Fair Value Per Share
Outstanding non-vested restricted stock units at January 30, 2021	1,214,212	$	22.71
Granted	206,685	70.77
Vested	(390,116)	22.74
Forfeited	(31,181)	25.26
Outstanding non-vested restricted stock units at May 1, 2021	999,600	$	32.56

The non-vested restricted stock units granted in the first quarter of 2021 generally vest and are expensed on a ratable basis over three years from the grant date of the award, if a threshold financial performance objective is achieved and the grantee remains employed by us through the vesting dates.

Performance Share Units

In the first quarter of 2020, we awarded PRSUs to certain members of senior management, which vest based on the achievement of share price performance goals and a minimum service requirement of one year. The PRSUs have a contractual term of three years. Shares issued in connection with vested PRSUs are generally restricted from sale, transfer, or other

disposition prior to the third anniversary of the grant date except under certain circumstances, including death, disability, or change in control. The majority of PRSUs awarded in 2020 vested in the first quarter of 2021. At May 1, 2021, the share price performance goals applicable to the remaining 3,223 outstanding PRSUs had been attained and we expect the PRSUs outstanding at May 1, 2021 to vest in the second quarter of 2021.

Prior to 2020 and in the first quarter of 2021, we issued PSUs to certain members of management, which will vest if certain financial performance objectives are achieved over a three-year performance period and the grantee remains employed by us during the performance period. The financial performance objectives for each fiscal year within the three-year performance period will be approved by the Compensation Committee of our Board of Directors during the first quarter of the respective fiscal year.

As a result of the process used to establish the financial performance objectives, we will only meet the requirements for establishing a grant date for PSUs when we communicate the financial performance objectives for the third fiscal year of the award to the award recipients, which will then trigger the service inception date, the fair value of the awards, and the associated expense recognition period. If we meet the applicable threshold financial performance objectives over the three-year performance period and the grantee remains employed by us through the end of the performance period, the PSUs will vest on the first trading day after we file our Annual Report on Form 10-K for the last fiscal year in the performance period.

We have begun or expect to begin recognizing expense related to PSUs and PRSUs as follows:

Issue Year

Outstanding PSUs and PRSUs at May 1, 2021

Actual Grant Date

Expected Valuation (Grant) Date

Actual or Expected Expense Period

2019

255,487

March 2021

Fiscal 2021

2020

3,223

April 2020

Fiscal 2020-2021

2021

166,055

March 2023

Fiscal 2023

Total

424,765

The number of shares to be distributed upon vesting of the PSUs depends on the average performance attained during the three-year performance period compared to the performance targets established by the Compensation Committee, and may result in the distribution of an amount of shares that is greater or less than the number of PSUs granted, as defined in the award agreement. During the first quarter of 2021, the PSUs issued in 2018 vested with an average performance attainment higher than the targets established. During the first quarters of 2021 and 2020, we recognized $8.6 million and $0.4 million in share-based compensation expense related to PSUs and PRSUs, respectively.

The following table summarizes the activity related to PSUs and PRSUs for the first quarter of 2021:


	Number of Units	Weighted Average Grant-Date Fair Value Per Share
Outstanding PSUs and PRSUs at January 30, 2021	474,031	$	24.31
Granted	263,787	70.24
Vested	(470,808)	24.27
Forfeited	(8,300)	70.24
Outstanding PSUs and PRSUs at May 1, 2021	258,710	$	69.74

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


	First Quarter
(In thousands)	2021		2020
Total fair value of restricted stock vested	$	26,901	$	4,040
Total fair value of performance shares vested	$	37,168	$	924

The total unearned compensation cost related to all share-based awards outstanding, excluding PSUs issued in 2021, at May 1, 2021 was approximately $46.2 million. This compensation cost is expected to be recognized through April 2024 based on existing vesting terms with the weighted-average remaining expense recognition period being approximately 1.7 years from May 1, 2021.