
J.	STOCK-BASED COMPENSATION

The Company has several stock option plans which allow for granting of stock options to employees, executives, and directors. The options are in the form of non-qualified stock options and are granted with an exercise price equal to the market value of the Company’s common stock on the date of grant. The options generally expire ten years from the date of grant. The Company also has a restricted stock plan that allows for the granting of non-vested shares of common stock to employees and executives and a restricted stock plan that allows for the granting of non-vested shares of common stock to non-employee directors.

As of February 1, 2014, 635,315 shares were available for grant under the various stock option plans, of which 447,457 shares were available for grant to executive officers. Also as of February 1, 2014, 1,139,296 shares were available for grant under the Company’s various restricted stock plans, of which 1,114,172 shares were available for grant to executive officers.

Compensation expense was recognized during fiscal 2013, 2012, and 2011 for equity-based grants, based on the grant date fair value of the awards. The fair value of grants of non-vested common stock awards is the stock price on the date of grant.

Information regarding the impact of compensation expense related to grants of non-vested shares of common stock is as follows:



	Fiscal Years Ended
	February 1, 2014		February 2, 2013		January 28, 2012

Stock-based compensation expense, before tax	$	5,066	$	8,388	$	6,403

Stock-based compensation expense, after tax	$	3,192	$	5,284	$	4,034

FASB ASC 718 requires the benefits of tax deductions in excess of the compensation cost recognized for stock options exercised during the period to be classified as financing cash inflows. This amount is shown as “excess tax benefit from stock option exercises” on the consolidated statements of cash flows. For fiscal 2013, 2012, and 2011, the excess tax benefit realized from exercised stock options was $399, $5,609, and $2,371, respectively.

The Company paid a special cash dividend in each of the past three fiscal years. On September 19, 2011, the Board of Directors authorized a $2.25 per share special cash dividend to be paid on October 27, 2011 to shareholders of record at the close of business on October 14, 2011. On November 5, 2012, the Board of Directors authorized a $4.50 per share special cash dividend to be paid on December 21, 2012 to shareholders of record at the close of business on December 7, 2012. On December 9, 2013, the Board of Directors authorized a $1.20 per share special cash dividend to be paid on January 27, 2014 to shareholders of record at the close of business on January 15, 2014. To preserve the intrinsic value for option holders, the Board also approved on each occasion, pursuant to the terms of the Company’s various stock option plans, a proportional adjustment to both the exercise price and the number of shares covered by each award for all outstanding stock options. This adjustment did not result in any incremental compensation expense.

A summary of the Company’s stock-based compensation activity related to stock options for the fiscal year ended February 1, 2014 is as follows:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value

Outstanding - beginning of year	42,808		$	1.79
Granted	—		—
Other (1)	334		0.05
Expired/forfeited	(496	)	0.01
Exercised	(25,555	)	0.01
Outstanding - end of year	17,091		$	4.12	1.27	years	$	687

Exercisable - end of year	17,091		$	4.12	1.27	years	$	687


(1)	An adjustment was made to the exercise price and number of options outstanding for the special cash dividend paid during January 2014. "Other" represents additional options issues as a result of this adjustment in the fourth quarter of fiscal 2013.

No stock options were granted during fiscal 2013, 2012, and 2011. The total intrinsic value of options exercised during fiscal 2013, 2012, and 2011 was $1,244, $17,386, and $7,218, respectively. As of February 1, 2014, there was no unrecognized compensation expense as all outstanding stock options were vested.

Non-vested shares of common stock granted during each of the past three fiscal years were granted pursuant to the Company’s 2005 Restricted Stock Plan and the Company’s 2008 Director Restricted Stock Plan. Shares granted under the 2005 Plan typically vest over a period of four years, only upon certification by the Compensation Committee of the Board of Directors that the Company has achieved its pre-established performance targets for the fiscal year. Shares granted under the 2008 Director Plan vest 25% on the date of grant and then in equal portions on each of the first three anniversaries of the date of grant.

A summary of the Company’s stock-based compensation activity related to grants of non-vested shares of common stock for the fiscal year ended February 1, 2014 is as follows:



	Shares		Weighted Average Grant Date Fair Value

Non-Vested - beginning of year	419,261		$	39.52
Granted	254,400		47.03
Forfeited	(2,832	)	40.49
Vested	(207,030	)	38.28
Non-Vested - end of year	463,799		$	44.19

As of February 1, 2014, there was $3,241 of unrecognized compensation expense related to grants of non-vested shares. It is expected that this expense will be recognized over a weighted average period of approximately 1.5 years. The total fair value of shares vested during fiscal 2013, 2012, and 2011 was $9,329, $10,199, and $7,527 respectively.