XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.21.1

Share-Based Compensation | 3 Months Ended
--- | ---
May 01, 2021
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 the Company 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 weeks ended May 1, 2021 and May 2, 2020 was $12.6 million ($9.4 million, net of tax) and $4.1 million ($2.9 million, net of tax), respectively. Stock Option Grants The Company has granted time-based stock options. Time-based stock option awards vest over the requisite service period of the award or to an employee’s eligible retirement eligible date, if earlier. A summary of the Company’s stock option activity for the 13 weeks ended May 1, 2021 follows:
|  |  |  |  |  | Weighted- Average |  |  | Weighted- Average Remaining Contractual |  |  | Aggregate |
|  | Options |  |  | Exercise Price |  |  | Term |  |  | Intrinsic Value |
|  | (In thousands) |  |  |  |  |  |  | (In years) |  |  | (In thousands) |
Outstanding - January 30, 2021 |  |  | 3,940 |  |  | $ | 14.87 |  |  |  |  |  |  |  |  |
Granted |  |  | 449 |  |  | $ | 32.58 |  |  |  |  |  |  |  |  |
Exercised (1) |  |  | (713 | ) |  | $ | 16.39 |  |  |  |  |  |  |  |  |
Outstanding - May 1, 2021 |  |  | 3,676 |  |  | $ | 16.74 |  |  |  | 5.2 |  |  | $ | 65,533 |
Vested and expected to vest - May 1, 2021 |  |  | 2,706 |  |  | $ | 16.67 |  |  |  | 3.6 |  |  | $ | 34,033 |
Exercisable - May 1, 2021 (2) |  |  | 1,578 |  |  | $ | 16.88 |  |  |  | 1.7 |  |  | $ | 27,902 |
(1) | Options exercised during the 13 weeks ended May 1, 2021 ranged in price from $8.62 to $21.41.
(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 on May 1, 2021.
Cash received from the exercise of stock options was $12.1 million for the 13 weeks ended May 1, 2021. The actual tax benefit realized from stock option exercises totaled $2.4 million for the 13 weeks ended May 1, 2021. There were no stock options exercised during the 13 weeks ended May 2, 2020. As of May 1, 2021, there was $9.8 million of unrecognized compensation expense for stock option awards that is expected to be recognized over a weighted average period of 2.4 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:
|  | 13 Weeks Ended |  | 13 Weeks Ended |
|  | May 1, |  | May 2, |
Black-Scholes Option Valuation Assumptions |  | 2021 |  | 2020 |
Risk-free interest rate (1) |  |  | 0.9 | % |  | 0.6 | %
Dividend yield |  |  | 1.6 | % |  | 6.0 | %
Volatility factor (2) |  |  | 50.7 | % |  | 43.1 | %
Weighted-average expected term (3) |  | 4.5 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 time-based 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 performance-based restricted stock 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 |
|  | May 1, 2021 |  |  | May 1, 2021 |
(Shares in thousands) |  | Shares |  |  | Weighted- Average Grant Date Fair Value |  |  | Shares |  |  | Weighted- Average Grant Date Fair Value |
Nonvested - January 30, 2021 |  |  | 3,698 |  |  | $ | 12.42 |  |  |  | 1,868 |  |  | $ | 17.44 |
Granted |  |  | 619 |  |  | $ | 32.58 |  |  |  | 307 |  |  | $ | 39.85 |
Vested |  |  | (739 | ) |  | $ | 8.83 |  |  |  | (275 | ) |  | $ | 19.48 |
Cancelled |  |  | (76 | ) |  | $ | 11.82 |  |  |  | (301 | ) |  | $ | 19.09 |
Nonvested - May 1, 2021 |  |  | 3,502 |  |  | $ | 16.65 |  |  |  | 1,599 |  |  | $ | 21.08 |
As of May 1, 2021, there was $41.8 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 2.3 years. Based on current probable performance, there is $12.0 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 three- year period. As of May 1, 2021, the Company had 7.6 million shares available for all equity grants.

X
- 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
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration