Stock-Based Compensation

12 Months Ended

Feb. 02, 2020

Note G: 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 (including those that are performance-based), deferred stock awards (collectively, “stock awards”) and dividend equivalents up to an aggregate of approximately 36,570,000 shares. As of February 2, 2020, there were approximately 5,430,000 shares available for future grant. Awards may be granted under the Plan to officers, employees and

non-employee

members of the Board of Directors of the company (the “Board”) or any parent or subsidiary. Shares issued as a result of award exercises or releases are primarily funded with the issuance of new shares.

Option Awards

Annual grants of option awards are limited to 1,000,000 shares on a per person basis and have a maximum term of seven years. The exercise price of these option awards

must

not

less than 100% of the closing price of our stock on the day prior to the grant date. Option awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain option awards contain vesting acceleration clauses resulting from events including, but not limited to, retirement, merger or a similar corporate event.

Stock Awards

Annual grants of stock awards are limited to 1,000,000 shares on a per person basis and have a maximum term of seven years. Stock awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain performance-based awards, which have variable payout conditions based on predetermined financial targets,

generally

vest three years from the date of grant. Certain stock awards and other agreements contain vesting acceleration clauses resulting from events including, but not

limited to, retirement, disability, death, merger

or a similar corporate event. 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

During fiscal 2019, fiscal 2018 and fiscal 2017, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses, of $64,163,000, $59,802,000 and $42,988,000, respectively. As of February 2, 2020, there was $83,444,000 of unrecognized stock-based compensation expense (net of estimated forfeitures), which we expect to recognize on a straight-line basis over a weighted average remaining service period of approximately two years. At each reporting period, all compensation expense attributable to vested awards has been fully recognized.

Restricted Stock Units

The following table summarizes our restricted stock unit activity during fiscal 2019:


	Shares			Weighted Average Grant Date Fair Value		Weighted Average Contractual Term Remaining (Years)		Intrinsic Value 1
Balance at February 3, 2019		3,012,923		$	52.88
Granted		1,066,337			58.27
Granted, with vesting subject to performance conditions		240,515			57.77
Released 2		(1,029,288	)		55.94
Cancelled		(406,293	)		53.89
Balance at February 2, 2020		2,884,194		$	54.09		3.00	$	202,124,000
Vested plus expected to vest at February 2, 2020		2,335,826		$	54.04		3.16	$	163,695,000

1	Intrinsic value for outstanding and unvested restricted stock units is based on the market value of our common stock on the last business day of the fiscal year (or $70.08).

2	Excludes 105,436 incremental shares released due to achievement of performance conditions above target.

The following table summarizes additional information about restricted stock units:


	Fiscal 2019 (52 weeks)		Fiscal 2018 (53 weeks)		Fiscal 2017 (52 weeks)
Weighted average grant date fair value per share of awards granted	$	58.18	$	49.57	$	52.76
Intrinsic value of awards released 1	$	65,403,000	$	34,213,000	$	35,508,000

1	Intrinsic value for releases is based on the market value on the date of release.

Tax Benefit

We record excess tax benefits and deficiencies resulting from the settlement of stock-based awards as a benefit or expense within income taxes in the period in which they occur. During fiscal 2019, fiscal 2018, and fiscal 2017, the current tax benefit related to stock-based awards totaled $13,793,000, $9,927,000, and $16,066,000, respectively.