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Stock-Based Compensation | 9 Months Ended
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Oct. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock-Based Compensation | 10. Stock-Based Compensation As of October 30, 2021, there were 1,903,301 shares of common stock available for issuance under the Company’s 2013 Omnibus Incentive Plan. Non-cash stock compensation expense is as follows:
|  | (in thousands) |
|  | Three Months Ended |  |  | Nine Months Ended |
|  | October 30, |  |  | October 31, |  |  | October 30, |  |  | October 31, |
Type of Non-Cash Stock Compensation |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Restricted stock and restricted stock unit grants (a) |  | $ | 8,192 |  |  | $ | 6,410 |  |  | $ | 22,132 |  |  | $ | 19,048 |
Stock option grants (a) |  |  | 4,815 |  |  |  | 4,679 |  |  |  | 13,891 |  |  |  | 15,707 |
Performance stock unit grants (a) |  |  | 4,290 |  |  |  | 2,317 |  |  |  | 17,333 |  |  |  | 8,696 |
Total (b) |  | $ | 17,297 |  |  | $ | 13,406 |  |  | $ | 53,356 |  |  | $ | 43,451 |
(a) Included in the line item “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income (Loss). (b) The amounts presented in the table above exclude taxes. For the three and nine month periods ended October 30, 2021, the tax benefit related to the Company’s non-cash stock compensation was approximately $3.1 million and $9.2 million, respectively. For the three and nine month periods ended October 31, 2020, the tax benefit related to the Company’s non-cash stock compensation was approximately $2.3 million and $8.3 million, respectively. Stock Options Stock option transactions during the nine month period ended October 30, 2021 are summarized as follows:
|  | Number of Shares |  |  | Weighted Average Exercise Price Per Share |
Options outstanding, January 30, 2021 |  |  | 1,346,775 |  |  | $ | 133.86 |
Options granted |  |  | 209,244 |  |  |  | 315.81 |
Options exercised (a) |  |  | (346,436 | ) |  |  | 91.24 |
Options forfeited |  |  | (36,961 | ) |  |  | 192.20 |
Options outstanding, October 30, 2021 |  |  | 1,172,622 |  |  | $ | 177.08 |
(a) Options exercised during the nine month period ended October 30, 2021 had a total intrinsic value of $75.0 million. The following table summarizes information about the stock options vested and expected to vest during the contractual term of such options as of October 30, 2021:
|  | Options |  |  | Weighted Average Remaining Contractual Life (Years) |  |  | Weighted Average Exercise Price |  |  | Aggregate Intrinsic Value (in millions) |
Options vested and expected to vest |  |  | 1,172,622 |  |  |  | 6.6 |  |  | $ | 177.08 |  |  | $ | 124.3 |
Options exercisable |  |  | 570,152 |  |  |  | 4.9 |  |  | $ | 136.73 |  |  | $ | 79.6 |
The fair value of each stock option granted during the nine month period ended October 30, 2021 was estimated using the Black Scholes option pricing model using the following assumptions:
|  |  | Nine Months Ended
|  |  | October 30,
|  |  | 2021
Risk-free interest rate |  |  | 0.45% - 1.13%
Expected volatility |  |  | 34% - 35%
Expected life (years) |  |  | 6.00 - 6.25
Contractual life (years) |  |  | 10.0
Expected dividend yield |  |  | 0.0%
Weighted average grant date fair value of options issued |  | $ | 110.12
The expected dividend yield was based on the Company’s expectation of not paying dividends in the near term. Since the Company completed its initial public offering in October 2013, it does not have sufficient history as a publicly traded company to evaluate its volatility factor. As such, the expected stock price volatility is based upon the historical volatility of the stock price over the expected life of the options of peer companies that are publicly traded. The risk free interest rate was based on the U.S. Treasury rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the awards being valued. For grants issued during the nine month period ended October 30, 2021, the expected life of the options was calculated using the simplified method. The simplified method defines the life as the average of the contractual term of the options and the weighted average vesting period for all option tranches. This methodology was utilized due to the relatively short length of time the Company’s common stock has been publicly traded. Restricted Stock Prior to May 1, 2019, the Company granted shares of restricted stock. Grants made on and after May 1, 2019 are in the form of restricted stock units. Restricted stock transactions during the nine month period ended October 30, 2021 are summarized as follows:
|  | Number of Shares |  |  | Weighted Average Grant Date Fair Value Per Award |
Non-vested awards outstanding, January 30, 2021 |  |  | 396,555 |  |  | $ | 168.87 |
Awards granted |  |  | 139,792 |  |  |  | 319.52 |
Awards vested (a) |  |  | (152,896 | ) |  |  | 152.85 |
Awards forfeited |  |  | (16,816 | ) |  |  | 201.01 |
Non-vested awards outstanding, October 30, 2021 |  |  | 366,635 |  |  |  | 231.52 |
(a) Restricted stock awards vested during the nine month period ended October 30, 2021 had a total intrinsic value of $47.6 million. The fair value of each share of restricted stock granted during Fiscal 2021 was based upon the closing price of the Company’s common stock on the grant date. Performance Stock Units The Company grants performance-based restricted stock units to its senior executives. Vesting of these performance stock units is based on continued service and the achievement of pre-established EBIT margin expansion and sales compounded annual growth rate (CAGR) goals (each weighted equally) over a three-year performance period. Based on the Company’s achievement of these goals, each award may range from 50% (at threshold performance) to no more than 200% of the target award. In the event that actual performance is below threshold, no award will be made. Compensation costs recognized on the performance stock units are adjusted, as applicable, for performance above or below the target specified in the award. Performance stock unit transactions during the nine month period ended October 30, 2021 are summarized as follows:
|  | Number of Shares |  |  | Weighted Average Grant Date Fair Value Per Award |
Non-vested units outstanding, January 30, 2021 |  |  | 148,668 |  |  | $ | 176.70 |
Units granted |  |  | 55,294 |  |  |  | 321.13 |
Awards forfeited |  |  | (16,064 | ) |  |  | 216.23 |
Non-vested units outstanding, October 30, 2021 |  |  | 187,898 |  |  |  | 215.82 |

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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