Share-Based Compensation (Tables)

3 Months Ended

May 03, 2014

A summary of the Company’s stock option activity for the 13 weeks ended May 3, 2014 follows:


	Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
	(In thousands)					(In years)		(In thousands)
Outstanding—February 1, 2014		3,925		$	17.65
Granted		126		$	14.50
Exercised (1)		(552	)	$	12.33
Cancelled		(840	)	$	25.31

Outstanding—May 3, 2014		2,659		$	16.18		2.4		276

Vested and expected to vest—May 3, 2014		2,647		$	16.19		2.4		276

Exercisable—May 3, 2014 (2)		81		$	8.09		1.1		276

(1)	Options exercised during the 13 weeks ended May 3, 2014 had exercise prices ranging from $8.09 to $13.12.

(2)	Options exercisable represent “in-the-money” vested options based upon the weighted-average exercise price of vested options compared to the Company’s stock price at May 3, 2014.

Black-Scholes Option Valuation Assumptions

The fair value of stock options was estimated based on the closing market price of the Company’s common stock on the date of the grant using a Black-Scholes option pricing model with the following weighted-average assumptions:


	13 Weeks Ended
Black-Scholes Option Valuation Assumptions	May 3, 2014	May 4, 2013
Risk-free interest rate (1)	1.5%	0.3%
Dividend yield	3.1%	2.0%
Volatility factor (2)	41.2%	34.4%
Weighted-average expected term (3)	4.5 years	2.5 years
Expected forfeiture rate (4)	8.0%	8.0%

(1)	Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options.

(2)	Based on a combination of historical volatility of the Company’s common stock and implied volatility.

(3)	Represents the period of time options are expected to be outstanding, based on historical experience.

(4)	Based upon historical experience.

Summary of Restricted Stock Activity

A summary of the Company’s restricted stock activity is presented in the following tables:


	Time-Based Restricted Stock Units					Performance-Based Restricted Stock Units
	13 Weeks Ended May 3, 2014					13 Weeks Ended May 3, 2014
(Shares in thousands)	Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value
Nonvested—February 1, 2014		1,155		$	20.13		2,395		$	16.85
Granted		1,357		$	14.45		1,225		$	14.41
Vested		(608	)	$	18.17		(604	)	$	15.33
Cancelled		(126	)	$	17.59		(17	)	$	22.50

Nonvested—May 3, 2014		1,778		$	16.65		2,999		$	16.13