Under our shareholder-approved Shoe Carnival, Inc. 2017 Equity Incentive Plan (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. The 2017 Plan initially reserved 1,000,000 shares of our common stock for issuance and sale. As of January 30, 2021, there were approximately 519,000 shares of our common stock available for future issuances under the 2017 Plan.

Stock-based compensation includes restricted stock units and performance stock units, restricted stock awards, and cash-settled stock appreciation rights (“SARs”). We have not issued stock options since 2008 and all were exercised prior to fiscal 2018.

Equity awards issued to employees are classified as either performance-based or service-based. Performance-based awards are granted such that they vest upon the achievement of specified levels of diluted net income per share during a specified performance period. 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 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 pursuant to our stock-based compensation plans:

	Number of Shares			Weighted- Average Grant Date Fair Value
Restricted stock units and performance stock units at February 1, 2020		263,135		$	29.44
Granted		159,189			14.96
Vested		(164,099	)		26.80
Forfeited		(1,717	)		31.94
Restricted stock units and performance stock units at January 30, 2021		256,508		$	22.13

The total fair value at grant date of restricted stock units and performance stock units that vested during fiscal 2020, 2019 and 2018 was $4.4 million, $2.4 million and $26,000, respectively. The weighted-average grant date fair value of restricted stock units and performance stock units granted during fiscal 2019 and fiscal 2018 was $31.29 and $25.05, respectively.

The following table summarizes transactions for our restricted stock awards pursuant to our stock-based compensation plans:

	Number of Shares			Weighted- Average Grant Date Fair Value
Restricted stock at February 1, 2020		67,435		$	24.23
Granted		12,045			24.91
Vested		(64,664	)		24.33
Forfeited		(14,816	)		24.37
Restricted stock at January 30, 2021		0		$	0.00

The total fair value at grant date of all restricted stock that vested during fiscal 2020, 2019 and 2018 was $1.6 million, $17.4 million and $1.3 million, respectively. The weighted-average grant date fair value of all restricted stock granted during fiscal 2019 and fiscal 2018 was $26.58 and $32.74, respectively.

The following table summarizes information regarding stock-based compensation expense recognized for all share-settled equity awards (restricted stock units, performance stock units and restricted stock awards):

(In thousands)

2020

2019

2018

Stock-based compensation expense before the

recognized income tax benefit

3,426

6,226

9,591

Income tax benefit

884

1,346

2,328

The $9.6 million of expense recognized in fiscal 2018 included a $2.2 million cumulative catch-up of expense recorded in the third quarter of fiscal 2018. This cumulative catch-up expense was related to performance-based restricted stock awards, which management had previously determined were not probable to vest prior to their expiration, but given our financial performance in fiscal 2018, in the third quarter of fiscal 2018, such awards were deemed by management as probable to vest.

As of January 30, 2021, there was approximately $1.9 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 1.2 years.

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 2020 will vest and become fully exercisable on March 31, 2021 and any unexercised SARs will expire on March 31, 2023. SARs granted during the first quarter of fiscal 2019 vested and became fully exercisable on March 31, 2020 and any unexercised SARs will expire on March 31, 2022. The SARs issued have a defined maximum gain of $10.00 over the exercise price of $13.79 for awards granted in fiscal 2020 and over the exercise price of $34.95 for awards granted in fiscal 2019.

During the first quarter of fiscal 2015, SARs were granted to certain non-executive employees, such that one-third of the shares underlying the SARs vested and became fully exercisable on each of the first three anniversaries of the date of the grant. During the second quarter of fiscal 2018, all remaining SARs related to this grant were exercised.

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Outstanding at February 1, 2020		43,200		$	34.95
Granted		43,000			13.79
Forfeited		(5,600	)		28.15
Exercised		(36,400	)		34.95
Outstanding at January 30, 2021		44,200		$	15.23		2.1

The fair value of these liability awards is 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 30, 2021, was $10.00.

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

	January 30, 2021			February 1, 2020
Risk free interest rate yield curve	0.07%-0.45		%	1.30%-1.56		%
Expected dividend yield		0.8	%		0.9	%
Expected volatility		63.11	%		48.63	%
Maximum life	2.1 Years			2.2 Years
Exercise multiple		1.29			1.29
Maximum payout	$	10.00		$	10.00
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 option data.

The following table summarizes information regarding stock-based compensation recognized for SARs:

(In thousands)

2020

2019

2018

Stock-based compensation before the

recognized income tax effect

423

228

540

Income tax effect

109

131

As of January 30, 2021, approximately $65,000 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.