XML 52 R41.htm IDEA: XBRL DOCUMENT v3.21.2
STOCK-BASED COMPENSATION (Tables)
 6 Months Ended
Aug. 01, 2021
Share-based Payment Arrangement [Abstract]  
Table Of Weighted Average Black Scholes Fair Value Assumptions [Table Text Block]
The following summarizes the assumptions used to estimate the fair value of stock options granted during the twenty-six weeks ended August 1, 2021 and August 2, 2020 and the resulting weighted average grant date fair value per stock option:
8/1/218/2/20
Weighted average risk-free interest rate1.24 %0.53 %
Weighted average expected stock option term (in years)6.256.25
Weighted average Company volatility47.58 %44.80 %
Expected annual dividends per share$0.15  $0.15  
Weighted average grant date fair value per stock option$48.28  $20.20  

The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for periods corresponding to the expected stock option term. The expected stock option term represents the weighted average period of time that stock options granted are expected to be outstanding, based on vesting schedules and the contractual term of the stock options. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the expected stock option term. Expected dividends are based on the anticipated common stock cash dividend rate for the Company at the time of grant; the dividend assumption for the stock options granted during the twenty-six weeks ended August 1, 2021 and August 2, 2020, respectively, was not affected by the Company’s suspension of its cash dividend beginning with the second quarter of 2020 in response to the impacts of the COVID-19 pandemic on its business and as a condition of the June 2020 Amendment that was in effect through June 10, 2021, as such suspension was viewed as temporary. Please see Note 16, “Stockholders' Equity,” for further discussion of dividends on the Company’s common stock.

The Company has continued to utilize the simplified method to estimate the expected term for its “plain vanilla” stock options granted due to a lack of relevant historical data resulting, in part, from changes in the pool of employees receiving stock option grants. The Company will continue to evaluate the appropriateness of utilizing such method.
Share-based Payment Arrangement, Option, Activity [Table Text Block]
Stock option activity for the twenty-six weeks ended August 1, 2021 was as follows:
(In thousands, except per stock option data)Stock OptionsWeighted Average Exercise Price
Per Stock Option
Outstanding at January 31, 20211,028 $98.23 
  Granted96 104.30 
  Exercised57 93.89 
  Cancelled40 117.08 
Outstanding at August 1, 20211,027 $98.29 
Exercisable at August 1, 2021652 $107.69 
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block]
RSU activity for the twenty-six weeks ended August 1, 2021 was as follows:
(In thousands, except per RSU data)RSUsWeighted Average Grant Date Fair Value Per RSU
Non-vested at January 31, 20211,470 $78.80 
  Granted550 108.97 
  Vested332 95.26 
  Cancelled104 70.71 
Non-vested at August 1, 20211,584 $86.35 
Table of Weighted Average Monte Carlo Fair Value Assumptions Performance Awards [Table Text Block]
8/1/218/2/20
Weighted average risk-free interest rate0.33 %0.20 %
Weighted average Company volatility60.69 %48.91 %
Expected annual dividends per share$0.15 $0.15 
Weighted average grant date fair value per PSU$159.29 $58.83 

The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for the term corresponding to the three-year performance period. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the three-year performance period. Expected dividends are based on the anticipated common stock cash dividend rate for the Company at the time of grant; the dividend assumption for the PSUs granted during the twenty-six weeks ended August 1, 2021 and August 2, 2020, respectively, was not affected by the Company’s suspension of its cash dividend beginning with the second quarter of 2020 in response to the impacts of the COVID-19 pandemic on its business and as a condition of the June 2020 Amendment that was in effect through June 10, 2021, as such suspension was viewed as temporary. Please see Note 16, “Stockholders' Equity,” for further discussion of dividends on the Company’s common stock.
For certain of the awards granted, the after-tax portion of the award is subject to a holding period of one year after the vesting date. For these awards, the weighted average grant date fair value was discounted 8.40% in 2021 and 15.05% in 2020 for the restriction of liquidity using the Finnerty and Chaffe model, respectively. The Company uses the model that is deemed more appropriate after an evaluation of current market conditions.
Schedule of Nonvested Performance-based Units Activity [Table Text Block]
Total PSU activity for the twenty-six weeks ended August 1, 2021 was as follows:

(In thousands, except per PSU data)PSUsWeighted Average Grant Date Fair Value Per PSU
Non-vested at January 31, 2021237 $96.48 
  Granted43 134.31 
  Reduction due to market conditions not satisfied41 158.97 
  Vested— — 
  Cancelled— — 
Non-vested at August 1, 2021239 $92.53