11. Share-Based Compensation Plans

For a discussion of our share-based compensation plans refer to Note 11 in our Annual Report on Form 10-K for the fiscal year ended January 31, 2015.

We account for share-based awards in accordance with the authoritative guidance 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 31, 2015 was $4.2 million and $12.6 million, respectively. Share-based compensation expense recognized for the three and nine months ended November 1, 2014 was $4.3 million and $12.3 million, respectively.

Non-Vested Deferred Stock Units, Performance Units and Restricted Stock

The following table summarizes the activity of time-based and performance-based awards for the nine months ended October 31, 2015:

	Units				Weighted-Average Grant-Date Fair Value
	Time- Based		Performance-Based		Time- Based		Performance- Based
Non-Vested at January 31, 2015	378,518		170,789		$	42.67	$	43.94
Granted	360,967		36,844		52.60		57.32
Vested (1)	(231,764	)	(18,977	)	43.69		46.41
Forfeited	(19,552	)	(20,000	)	40.17		33.09

Non-Vested at October 31, 2015	488,169		168,656		$	49.63	$	47.87

(1)Includes 86,035 shares relinquished for tax payments related to vested deferred stock units for the nine months ended October 31, 2015.

On April 3, 2013, our Board of Directors approved a change in the form of award agreements to be issued for grants of deferred stock units (“DSUs”) to participants under our 2004 Long-Term Incentive Plan. As revised, the award agreements provide that dividend equivalents, if any, will be accrued during the vesting period for such DSU awards and paid out only upon vesting of the underlying DSUs. As such, grants of DSU awards on or after April 3, 2013 earn dividends throughout the vesting period which are subject to the same vesting terms as the underlying share award. Grants of DSUs generally vest over a period of three years. DSU awards granted prior to April 3, 2013 are entitled to receive non-forfeitable dividend equivalents, if any, when and if paid to shareholders of record at the payment date. Included in the non-vested time-based awards as of October 31, 2015 are 17,576 DSUs granted prior to April 3, 2013.

Of the 36,844 performance units granted in the first nine months of 2015, 22,645 units represent a contingent right to receive one share of common stock and vest after our 2017 fiscal year, subject to our achievement of a cumulative performance target for fiscal years 2015-2017.

The remaining 14,199 performance units granted in the first nine months of 2015 represent a contingent right to receive up to 2.25 shares of common stock and vest after our 2017 fiscal year, subject to our achievement of a performance target for fiscal 2017. Assuming the performance target is achieved, the number of performance units earned will be adjusted based on multipliers related to (1) the Company’s adjusted earnings per share for fiscal 2017 and (2) the Company’s relative total shareholder return (“TSR”) compared to the TSR of certain peer companies over a pre-defined period.

Performance units that are unvested at the end of the performance period will lapse and be forfeited. The performance units earn dividends throughout the vesting period and are subject to the same vesting terms as the underlying performance-based awards.

Performance-based DSUs granted in April 2014 (“April 2014 performance-based DSUs”) represented a contingent right to receive one share of common stock and vested over a one year period, subject to our achievement of a performance target for 2014. Having met the performance target for 2014, the April 2014 performance-based DSUs vested in accordance with their terms in April 2015.

The following table summarizes the activity of restricted stock for the nine months ended October 31, 2015:

	Shares		Weighted- Average Grant-Date Fair Value
Non-Vested at January 31, 2015	67,790		$	37.05
Granted	12,425		50.31
Vested	(44,398	)	40.25
Forfeited	(19,360	)	27.77

Non-Vested at October 31, 2015	16,457		$	49.37

Restricted stock awards receive non-forfeitable dividends, if any, when and if paid to shareholders of record at the payment date.

As of October 31, 2015, we have unrecognized compensation expense related to non-vested DSUs, performance units, and shares of restricted stock of approximately $22.3 million, which is expected to be recognized over a weighted-average period of 1.7 years.

Stock Options

The following table summarizes the activity of stock options for the nine months ended October 31, 2015:

	Shares		Weighted- Average Exercise Price
Outstanding at January 31, 2015	660,283		$	38.28
Granted	41,951		57.91
Exercised	(19,617	)	33.02
Forfeited	—		—
Expired	—		—

Outstanding at October 31, 2015	682,617		$	39.64

Exercisable at October 31, 2015	301,070		$	31.83

The weighted-average grant date fair value of the 41,951 stock options granted during the nine months ended October 31, 2015 was $18.63 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 nine months ended October 31, 2015:

	For the Nine Months Ended
	October 31, 2015

Risk-free interest rate	1.51	%
Expected lives	5.0 years
Dividend yield	1.38	%
Expected volatility	39.74	%

As of October 31, 2015, we have unrecognized compensation expense related to non-vested stock options of approximately $3.9 million, which is expected to be recognized over a weighted-average period of 1.5 years.