Stock-based compensation includes share-settled awards issued pursuant to our shareholder approved Shoe Carnival, Inc. 2017 Equity Incentive Plan in the form of restricted stock units, performance stock units, and restricted stock. 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. Stock-based compensation expense for the employee stock purchase plan was $11,000 before the income tax benefit of $3,000 for each of the thirteen weeks ended May 1, 2021 and May 2, 2020, respectively.

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

	Number of Shares			Weighted- Average Grant Date Fair Value
Restricted stock units and performance stock units at January 30, 2021		256,508		$	22.13
Granted		107,986			56.42
Vested		(105,148	)		29.70
Restricted stock units and performance stock units at May 1, 2021		259,346		$	33.34

The total fair value at grant date of restricted stock units and performance stock units that vested during the thirteen weeks ended May 1, 2021 and May 2, 2020 was $3.1 million and $4.4 million, respectively. The weighted-average grant date fair value of restricted stock units and performance stock units granted during the thirteen weeks ended May 1, 2021 and May 2, 2020 was $56.42 and $14.88, respectively.

There were no restricted stock awards granted during the thirteen weeks ended May 1, 2021 or May 2, 2020. There were no restricted stock awards that vested during the thirteen weeks ended May 1, 2021 and the total fair value at grant date of restricted stock awards that vested during the thirteen weeks ended May 2, 2020 was $1.2 million.

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)	Thirteen Weeks Ended May 1, 2021			Thirteen Weeks Ended May 2, 2020
Stock-based compensation expense before the recognized income tax effect	$	1,140		$	1,130
Income tax effect at statutory rate	$	(282	)	$	(342	)
Additional income tax (benefit)/expense on vesting of awards	$	(880	)	$	45

As of May 1, 2021 approximately $7.8 million of unrecognized compensation expense remained related to our share-settled equity awards. The cost is expected to be recognized over a weighted average period of approximately 1.6 years.

Cash-settled stock appreciation rights (“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. SARs granted during the first quarter of fiscal 2020 vested and became 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. The remaining unexercised SARs from the first quarter fiscal 2019 grant were exercised in the first quarter of fiscal 2021. The SARs issued have a defined maximum gain of $10.00 over the exercise price of $61.88 for awards granted in fiscal 2021 and over the exercise price of $13.79 for awards granted in fiscal 2020.

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Outstanding at January 30, 2021		44,200		$	15.23
Granted		46,900			61.88
Exercised		(43,200	)		15.26
Outstanding at May 1, 2021		47,900		$	60.88		2.9

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 SAR awards as of May 1, 2021 was $2.70.

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

	May 1, 2021		May 2, 2020
Risk free interest rate yield curve	0.01% - 0.86%		0.10% - 0.36%
Expected dividend yield	0.9%		1.5%
Expected volatility	63.19%		62.95%
Maximum life	1.92 - 2.92 Years		1.91 - 2.91 Years
Exercise multiple	0.94 - 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 historical 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 calculated based on historical data.

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

(In thousands)

Thirteen

Weeks Ended May 1, 2021

Thirteen

Weeks Ended May 2, 2020

Stock-based compensation expense/(benefit) before the

recognized income tax effect

(87

)

Income tax effect at statutory rate

(19

)

As of May 1, 2021, approximately $109,000 in unrecognized compensation expense remained related to non-vested SARs. This expense is expected to be recognized over a period of approximately 0.9 years.