Share-Based Compensation Plans

9 Months Ended

Oct. 29, 2011

Share-Based Compensation Plans [Abstract]

Share-Based Compensation Plans

9. Share-Based Compensation Plans

     We maintain several equity plans under which we may grant stock options, stock appreciation rights, restricted stock, deferred stock units and performance based awards to full-time key employees and non-employee directors. We account for share-based awards in accordance with the FASB standard regarding share-based payments, which requires the compensation cost resulting from all share-based payment transactions be recognized in the financial statements. The amount of compensation cost is measured based on the grant-date fair value of the instrument issued and is recognized over the vesting period. Share-based compensation expense recognized for the three and nine months ended October 29, 2011 was $3.7 million and $10.2 million, respectively. Share-based compensation expense recognized for the three and nine months ended October 30, 2010 was $3.1 million and $8.8 million, respectively.

     Stock Options

     The following table summarizes stock option activity for the nine months ended October 29, 2011:

				Weighted-
				Average
				Exercise
	Shares			Price
Outstanding at January 29, 2011		1,563,473		$	20.64
Granted		138,250			27.84
Exercised		(275,471	)		15.50
Forfeited		(5,000	)		22.72
Expired		(3,216	)		13.74
Outstanding at October 29, 2011		1,418,036		$	22.35
Exercisable at October 29, 2011		713,523		$	20.43

     The weighted-average grant date fair value of the 138,250 stock options granted during the nine months ended October 29, 2011 was $11.65 per share. The following table summarizes the weighted average assumptions used to fair value stock options at the date of grant using the Black-Scholes option pricing model for the three and nine months ended October 29, 2011:

	For the Three			For the Nine
	Months Ended			Months Ended
	October 29,			October 29,
	2011			2011
Risk-free interest rate		0.98	%		2.16	%
Expected lives	5.0 years			5.0 years
Dividend yield		1.74	%		1.70	%
Expected volatility		57.92	%		53.67	%

     The assumptions presented in the table above represent the weighted average of the applicable assumptions used to fair value stock options. Expected volatility is based on historical volatility of our common stock. The expected term represents the period of time the options are expected to be outstanding after their grant date. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is based on the average of the annual dividend divided by the market price of our common stock at the time of declaration.

     As of October 29, 2011, we have unrecognized compensation expense related to nonvested stock options of approximately $5.3 million which is expected to be recognized over a weighted average period of 2.5 years.

Nonvested Shares

     The following table summarizes deferred stock unit activity for the nine months ended October 29, 2011:

				Weighted-
				Average
				Grant-Date
	Shares			Fair Value
Nonvested at January 29, 2011		419,085		$	24.28
Granted		470,999			28.65
Vested (1)		(338,510	)		24.18
Forfeited		(6,625	)		26.14
Nonvested at October 29, 2011		544,949		$	28.10

(1) Includes 108,457 shares relinquished for tax payments related to vested deferred stock units for the nine months ended October 29, 2011.

     The following table summarizes restricted stock activity for the nine months ended October 29, 2011:

				Weighted-
				Average
				Grant-Date
	Shares			Fair Value
Nonvested at January 29, 2011		49,185		$	26.04
Granted		114,013			28.18
Vested		(39,556	)		26.06
Forfeited		—			—
Nonvested at October 29, 2011		123,642		$	28.01

     As of October 29, 2011, we have unrecognized compensation expense related to nonvested shares of approximately $11.9 million which is expected to be recognized over a weighted average period of 1.6 years.

     Employee Stock Purchase Plan

     The Employee Stock Discount Plan (“ESDP”) allows employees to authorize after-tax payroll deductions to be used for the purchase of up to 2,137,500 shares of our common stock at 85% of the lesser of the fair market value on the first day of the offering period or the fair market value on the last day of the offering period. We make no contributions to this plan but pay all brokerage, service and other costs incurred. The plan, as amended, allows participants to purchase no more than 125 shares during any calendar quarter.

     During the nine months ended October 29, 2011, employees purchased 76,699 shares under the ESDP, which had a weighted-average share price of $22.48 per share. As of October 29, 2011, 980,367 shares were reserved for future issuance under the ESDP.