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Share-Based Compensation | 9 Months Ended
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Oct. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Share-Based Compensation | 9. Share-Based Compensation The Company accounts for share-based compensation under the provisions of ASC 718, Compensation - Stock Compensation (“ASC 718”), which requires companies to measure and recognize compensation expense for all share-based payments at fair value. Total share-based compensation expense included in the Consolidated Statements of Operations for the 13 and 39 weeks ended October 31, 2020 was $9.0 million ($5.7 million, net of tax) and $24.7 million ($17.9 million, net of tax), respectively, and for the 13 and 39 weeks ended November 2, 2019 was $5.6 million ($4.3 million, net of tax) and $19.9 million ($15.3 million, net of tax), respectively. Stock Option Grants The Company grants both time-based and performance-based stock options. A summary of the Company’s stock option activity for the 39 weeks ended October 31, 2020 follows:
|  |  |  |  |  | Weighted- Average |  |  | Weighted- Average Remaining Contractual |  |  | Aggregate |
|  | Options |  |  | Exercise Price |  |  | Term |  |  | Intrinsic Value |
|  | (In thousands) |  |  |  |  |  |  | (In years) |  |  | (In thousands) |
Outstanding - February 1, 2020 |  |  | 2,584 |  |  | $ | 18.18 |  |  |  |  |  |  |  |  |
Granted |  |  | 1,705 |  |  | $ | 10.30 |  |  |  |  |  |  |  |  |
Cancelled |  |  | (139 | ) |  | $ | 18.96 |  |  |  |  |  |  |  |  |
Outstanding - October 31, 2020 |  |  | 4,150 |  |  | $ | 14.92 |  |  |  | 5.0 |  |  | $ | 5,810 |
Vested and expected to vest - October 31, 2020 |  |  | 3,100 |  |  | $ | 15.54 |  |  |  | 3.4 |  |  | $ | 5,166 |
Exercisable - October 31, 2020 (1) |  |  | 1,742 |  |  | $ | 17.09 |  |  |  | 1.5 |  |  | $ | - |
(1) | 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 on October 31, 2020.
There was no cash received from the exercise of stock options for the 39 weeks ended October 31, 2020. Cash received from the exercise of stock options was $2.1 million for the 39 weeks ended November 2, 2019. The actual tax benefit realized from stock option exercises totaled $0.1 million for the 39 weeks ended November 2, 2019. As of October 31, 2020, there was $6.4 million of unrecognized compensation expense for stock option awards that is expected to be recognized over a weighted average period of 2.0 years. The fair value of stock options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:
|  | 39 Weeks Ended |
|  | October 31, |  | November 2, |
Black-Scholes Option Valuation Assumptions |  | 2020 |  | 2019 |
Risk-free interest rate (1) |  | 0.3 - 0.6% |  |  | 2.2 | %
Dividend yield |  | 3.5 - 6.0 % |  |  | 2.4 | %
Volatility factor (2) |  | 43.1 - 48.7% |  |  | 38.2 | %
Weighted-average expected term (3) |  | 4.4 years |  | 4.4 years |
(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 historical volatility of the Company’s common stock.
(3) | Represents the period of time options are expected to be outstanding. The weighted average expected option terms were determined based on historical experience.
Restricted Stock Grants Time-based restricted stock awards are comprised of time-based restricted stock units. These awards vest over three years. Time-based restricted stock units receive dividend equivalents in the form of additional time-based restricted stock units, which are subject to the same restrictions and forfeiture provisions as the original award. Performance-based restricted stock awards include performance-based restricted stock units. These awards cliff vest at the end of a three-year period based upon the Company’s achievement of pre-established goals throughout the term of the award. Performance-based restricted stock units receive dividend equivalents in the form of additional performance-based restricted stock units, which are subject to the same restrictions and forfeiture provisions as the original award. The grant date fair value of some restricted stock awards is based on the closing market price of the Company’s common stock on the date of grant. A Monte-Carlo simulation was utilized for the remaining awards. 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 |
|  | 39 Weeks Ended |  |  | 39 Weeks Ended |
|  | October 31, 2020 |  |  | October 31, 2020 |
(Shares in thousands) |  | Shares |  |  | Weighted- Average Grant Date Fair Value |  |  | Shares |  |  | Weighted- Average Grant Date Fair Value |
Nonvested - February 1, 2020 |  |  | 2,196 |  |  | $ | 18.56 |  |  |  | 2,138 |  |  | $ | 18.38 |
Granted |  |  | 2,701 |  |  | $ | 9.31 |  |  |  | 503 |  |  | $ | 15.83 |
Vested |  |  | (948 | ) |  | $ | 16.66 |  |  |  | (319 | ) |  | $ | 14.50 |
Cancelled |  |  | (247 | ) |  | $ | 16.47 |  |  |  | (467 | ) |  | $ | 22.28 |
Nonvested - October 31, 2020 |  |  | 3,702 |  |  | $ | 12.41 |  |  |  | 1,855 |  |  | $ | 17.37 |
As of October 31, 2020, there was $32.1 million of unrecognized compensation expense related to non-vested, time-based restricted stock unit awards that is expected to be recognized over a weighted-average period of 2.1 years. Based on current probable performance, there is $6.7 million of unrecognized compensation expense related to performance-based restricted stock unit awards which will be recognized as achievement of performance goals is probable over a one- to two- year period. As of October 31, 2020, the Company had 9.0 million shares available for all equity grants.

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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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