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STOCK OPTIONS AND RESTRICTED STOCK
 12 Months Ended
Dec. 31, 2013
STOCK OPTIONS AND RESTRICTED STOCK [Abstract]  
STOCK OPTIONS AND RESTRICTED STOCK
STOCK OPTIONS AND RESTRICTED STOCK

Under The Jones Group Inc. 2009 Long Term Incentive Plan, we may grant stock options and other awards from time to time to key employees, officers, directors, advisors and independent consultants to us or to any of our subsidiaries.  Shares available for future option and restricted stock grants at December 31, 2013 and 2012 totaled 4.1 million and 2.7 million, respectively.  Under the Merger Agreement, we are subject to restrictions on our ability to grant awards.

Compensation cost recorded for stock-based employee compensation awards (including awards to non-employee directors and consultants) reflected as an SG&A expense was $23.3 million, $19.7 million and $16.7 million for 2013, 2012 and 2011, respectively.  The total tax benefit recognized for the compensation cost recorded for stock-based employee compensation awards for 2013, 2012 and 2011 totaled $7.1 million, $6.3 million and $5.1 million, respectively.  Total compensation cost related to unvested awards not yet recognized at December 31, 2013 was $21.1 million, which is expected to be amortized over a weighted-average period of approximately 23 months.

Stock Options

In general, options become exercisable over either a three-year or five-year period from the grant date and expire seven years after the date of grant.  In certain cases for non-employee directors, options become exercisable six months after the grant date.  Our policy is to issue new shares upon the exercise of options and, when possible, to offset these new shares by repurchasing shares in the open market.  We currently do not have any outstanding stock options.

The following tables summarize information about stock option transactions and related information (options in millions):

 
 
2012
  
2011
 
 
 
Options
  
Weighted Average Exercise Price
  
Options
  
Weighted Average Exercise Price
 
 
Outstanding, January 1,
  
1.9
  
$
36.50
   
4.4
  
$
34.74
 
Exercised
  
-
   
-
   
-
   
-
 
Cancelled
  
-
   
-
   
(0.1
)
  
32.87
 
Expired
  
(1.9
)
  
36.50
   
(2.4
)
  
33.43
 
Outstanding, December 31,
  
-
  
$
-
   
1.9
  
$
36.50
 
 
Exercisable, December 31,
  
-
  
$
-
   
1.9
  
$
36.50
 


 
 
2012
  
2011
 
Weighted-average contractual term (in years) of:
 
  
 
Options outstanding at end of year
  
-
   
0.2
 
Options exercisable at end of year
  
-
   
0.2
 
 
Intrinsic value (in millions) of:
        
Options outstanding at end of year
 
$
-
  
$
-
 
Options exercisable at end of year
 
$
-
  
$
-
 
Options exercised during the year
 
$
-
  
$
-
 
 
Fair value (in millions) of options vested during the year
 
$
-
  
$
-
 

Restricted Stock

Compensation cost for restricted stock that vests based upon the passage of time or on the achievement of a performance condition is measured as the excess, if any, of the quoted market price of our stock at the date the common stock is granted over the amount the employee must pay to acquire the stock (which is generally zero).  Compensation cost for restricted stock that vests upon the achievement of a performance condition is also based upon the probability that the performance condition will be satisfied.  Compensation cost for restricted stock that vests based upon the achievement of a market condition is determined based on a Monte Carlo valuation model and is recognized regardless of whether or not the market condition is satisfied.

Compensation cost, net of projected forfeitures, is recognized over the period between the issue date and the date any restrictions lapse, with compensation cost for grants with a graded vesting schedule recognized on a straight-line basis over the requisite service period for the total award.  Restricted share awards generally vest over a period of approximately three years.  The restrictions do not affect voting and dividend rights except for certain grants with performance and market conditions where dividends are paid only to the extent the shares vest.

Time-Based Vesting

The following tables summarize information about unvested restricted stock transactions and related information for shares subject to time-based vesting (shares in millions):

 
 
2013
  
2012
  
2011
 
 
 
Shares
  
Weighted Average Fair Value
  
Shares
  
Weighted Average Fair Value
  
Shares
  
Weighted Average Fair Value
 
 
Nonvested, January 1,
  
2.2
  
$
11.64
   
1.9
  
$
11.66
   
2.0
  
$
10.24
 
Granted
  
1.1
   
12.49
   
1.2
   
9.76
   
0.9
   
12.56
 
Vested
  
(0.5
)
  
13.86
   
(0.7
)
  
8.24
   
(0.8
)
  
9.27
 
Forfeited
  
(0.2
)
  
11.86
   
(0.2
)
  
12.43
   
(0.2
)
  
11.34
 
Nonvested, December 31,
  
2.6
  
$
11.85
   
2.2
  
$
11.64
   
1.9
  
$
11.66
 


 
 
2013
  
2012
  
2011
 
 
Fair value (in millions) of shares vested during the year
 
$
7.4
  
$
5.7
  
$
7.7
 

Performance Conditions

Restricted stock grants that vest subject to performance conditions will vest subject to achievement of a cumulative operating cash flow target for a specified three-year period, as follows, with interpolation for intermediate points.

Performance Against Budget
Vesting
100% or Better
100%
90%
75%
80%
50%
Below 80%
0%

The following tables summarize information about unvested restricted stock transactions and related information for shares with performance conditions (shares in millions):

 
 
2013
  
2012
  
2011
 
 
 
Shares
  
Weighted Average Fair Value
  
Shares
  
Weighted Average Fair Value
  
Shares
  
Weighted Average Fair Value
 
 
Nonvested, January 1,
  
1.8
  
$
11.48
   
1.5
  
$
10.79
   
1.3
  
$
11.21
 
Granted
  
0.8
   
12.00
   
1.0
   
9.34
   
0.6
   
12.61
 
Vested
  
(0.4
)
  
14.90
   
(0.6
)
  
6.19
   
(0.3
)
  
14.46
 
Forfeited
  
(0.1
)
  
10.78
   
(0.1
)
  
10.30
   
(0.1
)
  
15.28
 
Nonvested, December 31,
  
2.1
  
$
11.22
   
1.8
  
$
11.48
   
1.5
  
$
10.79
 


 
 
2013
  
2012
  
2011
 
 
Fair value (in millions) of shares vested during the year
 
$
5.9
  
$
3.6
  
$
4.8
 

Market Conditions

Restricted stock grants that vest subject to market conditions will vest if our total shareholder return (which is the stock price appreciation, assuming dividends are reinvested in our common stock when paid) for a specified three-year period is equal to or greater than the median total shareholder return of a peer group of apparel, footwear, and department store companies, as follows, with interpolation for intermediate points.

Performance Relative to Peers
Vesting
Median or Better
100%
40th Percentile
75%
30th Percentile
50%
Below 30th Percentile
0%

The following tables summarize information about unvested restricted stock transactions and related information for shares with market conditions (shares in millions):

 
 
2013
  
2012
  
2011
 
 
 
Shares
  
Weighted Average Fair Value
  
Shares
  
Weighted Average Fair Value
  
Shares
  
Weighted Average Fair Value
 
 
Nonvested, January 1,
  
1.8
  
$
5.94
   
1.5
  
$
6.80
   
1.3
  
$
11.21
 
Granted
  
0.8
   
7.25
   
1.0
   
3.66
   
0.6
   
3.15
 
Vested
  
-
   
-
   
(0.2
)
  
6.60
   
(0.3
)
  
14.46
 
Forfeited
  
(0.5
)
  
12.56
   
(0.5
)
  
3.33
   
(0.1
)
  
15.28
 
Nonvested, December 31,
  
2.1
  
$
4.87
   
1.8
  
$
5.94
   
1.5
  
$
6.80
 


 
 
2013
  
2012
  
2011
 
 
Fair value (in millions) of shares vested during the year
  
-
  
$
1.6
  
$
4.8