XML 26 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
STOCK-BASED COMPENSATION
 3 Months Ended
May 05, 2013
STOCK-BASED COMPENSATION

NOTE B. STOCK-BASED COMPENSATION

Equity Award Programs

Our Amended and Restated 2001 Long-Term Incentive Plan (the “Plan”) provides for grants of incentive stock options, nonqualified stock options, stock-settled stock appreciation rights (collectively, “option awards”), restricted stock awards, restricted stock units, deferred stock awards (collectively, “stock awards”) and dividend equivalents up to an aggregate of 25,759,903 shares. As of May 5, 2013, there were 6,128,246 shares available for future grant. Awards may be granted under the Plan to officers, employees and non-employee Board members of the company or any parent or subsidiary. Annual grants are limited to 1,000,000 shares covered by option awards and 400,000 shares covered by stock awards on a per person basis. All grants of option awards made under the Plan have a maximum term of seven years. The exercise price of these option awards is not less than 100% of the closing price of our stock on the day prior to the grant date. Option awards and stock awards granted to employees generally vest over a period of four years. Certain option awards, stock awards and other agreements contain vesting acceleration clauses resulting from events including, but not limited to, retirement, merger or a similar corporate event. Option and stock awards granted to non-employee Board members generally vest in one year. Non-employee Board members automatically receive stock awards on the date of their initial election to the Board and annually thereafter on the date of the annual meeting of stockholders (so long as they continue to serve as a non-employee Board member).

Stock-Based Compensation Expense

We measure and record stock-based compensation expense in our Consolidated Financial Statements for all employee stock-based awards using a fair value method. During the thirteen weeks ended May 5, 2013 and April 29, 2012, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses, of $8,991,000 (including $1,341,000 related to the retirement of one of our former brand presidents) and $7,993,000 (including stock-based compensation expense of $3,019,000 related to the retirement of our former Executive Vice President, Chief Operating and Chief Financial Officer), respectively.

Stock Options

The following table summarizes our stock option activity during the thirteen weeks ended May 5, 2013:

 

      Shares  

Balance at February 3, 2013

      428,930   

Granted

      0   

Exercised

      (124,102 ) 

Cancelled

      0   

Balance at May 5, 2013 (100% vested)

      304,828   

Stock-Settled Stock Appreciation Rights

The following table summarizes our stock-settled stock appreciation right activity during the thirteen weeks ended May 5, 2013:

 

      Shares  

Balance at February 3, 2013

      2,527,784   

Granted

      0   

Converted into common stock

      (318,775 ) 

Cancelled

      (28,775 ) 

Balance at May 5, 2013

      2,180,234   

Vested at May 5, 2013

      1,488,989   

Vested plus expected to vest at May 5, 2013

      1,940,722   

Restricted Stock Units

The following table summarizes our restricted stock unit activity during the thirteen weeks ended May 5, 2013:

 

      Shares  

Balance at February 3, 2013

      2,772,426   

Granted

      815,705   

Released

      (260,913 ) 

Cancelled

      (45,261 ) 

Balance at May 5, 2013

      3,281,957   

Vested plus expected to vest at May 5, 2013

      2,239,606