Stock-based compensation includes share-settled awards issued pursuant to our shareholder approved Shoe Carnival, Inc. 2017 Equity Incentive Plan (the “2017 Plan”) in the form of restricted stock units, performance stock units, and restricted and other stock awards. Additionally, we recognize stock-based compensation expense for the discount on shares sold to employees through our Employee Stock Purchase Plan and for cash-settled stock appreciation rights (SARs). For fiscal years 2021, 2020 and 2019, stock-based compensation expense was comprised of the following:


(In thousands)	2021			2020		2019
Share-settled equity awards	$	5,234		$	3,426	$	6,226
Stock appreciation rights		269			423		228
Employee stock purchase plan		28			34		32
Total stock-based compensation expense	$	5,531		$	3,883	$	6,486
Income tax benefit at statutory rates	$	1,399		$	1,002	$	1,402
Additional income tax (benefit)/expense on vesting of share-settled awards	$	(992	)	$	81	$	(1,950	)

As of January 29, 2022, there was approximately $3.4 million of unrecognized compensation expense remaining related to our share-settled equity awards. The cost is expected to be recognized over a weighted average period of approximately 0.9 years. As of January 29, 2022, approximately $41,000 in unrecognized compensation expense remained related to non-vested SARs. This expense is expected to be recognized over a period of approximately 0.2 years.

Under the 2017 Plan, we may issue stock units, restricted stock, stock appreciation rights, stock options and other stock-based awards to eligible participants. According to the terms of the 2017 Plan, no further awards may be made from any previously approved equity plans. As of January 29, 2022, there were approximately 847,000 shares of our common stock available for future issuances under the 2017 Plan.

Equity awards issued to employees are classified as either performance-based or service-based. Our outstanding performance-based equity awards were granted such that vesting depended on whether diluted net income per share met an established threshold, target, or maximum level of performance. Diluted net income per share below the threshold level of performance would have resulted in complete forfeiture of the award.

Our service-based restricted stock units and restricted stock awards vest under different scenarios based on the year they were granted, as determined and approved by our Board of Directors. Typical vesting scenarios are as follows: (a) one-third of the award vests on each of the first three anniversaries subsequent to the date of the grant; (b) one-half of the award vests after one year and one-half vests after two years; (c) one-third of the award vests after two years

and two-thirds of the award vests after three years; (d) the full award vests at the end of a 2-year service period subsequent to the date of grant; or (e) for our non-employee Board members, all restricted stock awards are issued to vest on January 2nd of the year following the year of the grant. Awards that contain both performance and service-based conditions require that the performance target be met during the required service period.

Under the 2017 Plan, recipients of restricted stock units and performance stock units are entitled to receive dividend equivalents, based on dividends actually declared and paid, on the restricted stock units and performance stock units, and such dividend equivalents are subject to the same restrictions and risk of forfeiture as the restricted stock units and performance stock units. Dividends paid with respect to shares subject to the non-vested portion of a restricted stock award are also subject to the same restrictions and risk of forfeiture as the shares of restricted stock to which such dividends relate.

The following table summarizes transactions for our restricted stock units and performance stock units:


	Number of Shares			Weighted- Average Grant Date Fair Value
Outstanding at January 30, 2021		513,016		$	11.07
Granted		217,472			28.25
Vested		(238,964	)		15.50
Forfeited		(34,486	)		16.17
Outstanding at January 29, 2022		457,038		$	16.54

The total fair value at grant date of restricted stock units and performance stock units that vested during fiscal 2021, 2020 and 2019 was $3.7 million, $4.4 million and $2.4 million, respectively. The weighted-average grant date fair value of restricted stock units and performance stock units granted during fiscal 2020 and fiscal 2019 was $7.48 and $15.65, respectively.

The following table summarizes transactions for our restricted stock and other stock awards:


	Number of Shares			Weighted- Average Grant Date Fair Value
Outstanding at January 30, 2021		0		$	0.00
Granted		8,702			32.79
Vested		(8,702	)		32.79
Outstanding at January 29, 2022		0		$	0.00

The total fair value at grant date of restricted stock and other stock awards that vested during fiscal 2021, 2020 and 2019 was $0.3 million, $1.6 million and $17.4 million, respectively. The weighted-average grant date fair value of restricted stock and other stock awards granted during fiscal 2020 and fiscal 2019 was $12.46 and $13.29, respectively.

Cash-settled SARs are granted to certain non-executive employees. Each SAR entitles holders, upon exercise of their vested shares, to receive cash in an amount equal to the closing price of our stock on the date of exercise less the exercise price, with a maximum amount of gain defined. The SARs granted during the first quarter of fiscal 2021 will vest and become fully exercisable on March 31, 2022 and any unexercised SARs will expire on March 31, 2024. The SARs issued in fiscal 2021 have a defined maximum gain of $5.00 over the exercise price of $30.94.

SARs granted during the first quarter of fiscal 2020 vested and became fully exercisable on March 31, 2021 and have all been exercised. SARs granted during the first quarter of fiscal 2019 vested and became fully exercisable on March 31, 2020 and have all been exercised.

The following table summarizes SARs activity:


	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Outstanding at January 30, 2021		88,400		$	7.61
Granted		93,800			30.94
Forfeited		(9,000	)		30.94
Exercised		(88,400	)		7.61
Outstanding at January 29, 2022		84,800		$	30.94		2.2

The fair value of these liability awards are remeasured, using a trinomial lattice model, at each reporting period until the date of settlement. Increases or decreases in stock-based compensation expense are recognized over the vesting period, or immediately for vested awards. The weighted-average fair value of outstanding, non-vested SAR awards as of January 29, 2022, was $2.87.

The fair value was estimated using a trinomial lattice model with the following assumptions:


	January 29, 2022			January 30, 2021
Risk free interest rate yield curve	0.04%-1.61%			0.07%-0.45%
Expected dividend yield		0.8	%		0.8	%
Expected volatility		63.31	%		63.11	%
Maximum life	2.2 Years			2.1 Years
Exercise multiple		1.03			1.29
Maximum payout	$	5.00		$	5.00
Employee exit rate	2.2% - 9.0%			2.2% - 9.0%

The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the end of the reporting period. The expected dividend yield was based on our quarterly cash dividends, with the assumption that quarterly dividends would continue at that rate. Expected volatility was based on the historical volatility of our common stock. The exercise multiple and employee exit rate were based on historical data.

In 1995, our Board of Directors and shareholders approved the Shoe Carnival, Inc. Employee Stock Purchase Plan (the “Stock Purchase Plan”). The Stock Purchase Plan reserves 450,000 shares of our common stock (subject to adjustment for any subsequent stock splits, stock dividends and certain other changes in our common stock) for issuance and sale to any employee who has been employed for more than a year at the beginning of the calendar year, and who is not a 10% owner of our common stock, at 85% of the then fair market value up to a maximum of $5,000 in any calendar year. Under the Stock Purchase Plan, 6,000, 16,000 and 13,000 shares of common stock were purchased by plan participants and proceeds to us for the sale of those shares were approximately $159,000, $195,000 and $182,000 for fiscal years 2021, 2020 and 2019, respectively. At January 29, 2022, there were 118,000 shares of unissued common stock reserved for future purchase under the Stock Purchase Plan.