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Share-Based Compensation | 6 Months Ended
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Jul. 31, 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 and 26 weeks ended July 31, 2021 was $9.0 million ($6.8 million, net of tax) and $21.6 million ($16.4 million, net of tax), respectively, and for the 13 and 26 weeks ended August 1, 2020 was $11.6 million ($7.0 million, net of tax) and $15.7 million ($9.5 million, net of tax), respectively. Stock Option Grants The Company has granted time-based stock option awards. 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 26 weeks ended July 31, 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) |  |  | (771 | ) |  | $ | 16.33 |  |  |  |  |  |  |  |  |
Outstanding - July 31, 2021 |  |  | 3,618 |  |  | $ | 16.76 |  |  |  | 4.9 |  |  | $ | 64,071 |
Vested and expected to vest - July 31, 2021 |  |  | 2,778 |  |  | $ | 16.50 |  |  |  | 3.5 |  |  | $ | 28,599 |
Exercisable - July 31, 2021 (2) |  |  | 1,788 |  |  | $ | 16.28 |  |  |  | 2.0 |  |  | $ | 32,531 |
(1) | Options exercised during the 26 weeks ended July 31, 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 July 31, 2021.
Cash received from the exercise of stock options was $13.1 million for the 26 weeks ended July 31, 2021. The actual tax benefit realized from share-based payments totaled $4.1 million for the 26 weeks ended July 31, 2021. There were no stock options exercised during the 26 weeks ended August 1, 2020. As of July 31, 2021, there was $8.6 million of unrecognized compensation expense for stock option awards that is expected to be recognized over a weighted average period of 2.2 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:
|  | 26 Weeks Ended |  | 26 Weeks Ended
|  | July 31, |  | August 1,
Black-Scholes Option Valuation Assumptions |  | 2021 |  | 2020
Risk-free interest rate (1) |  | 0.9% |  | 0.3 - 0.6%
Dividend yield |  | 1.6% |  | 3.5 - 6.0%
Volatility factor (2) |  | 50.7% |  | 43.1 - 48.7%
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 that 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 to determine the fair value 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 |
|  | July 31, 2021 |  |  | July 31, 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 |  |  | 657 |  |  | $ | 32.64 |  |  |  | 320 |  |  | $ | 39.93 |
Vested |  |  | (1,268 | ) |  | $ | 13.45 |  |  |  | (275 | ) |  | $ | 19.48 |
Cancelled |  |  | (163 | ) |  | $ | 12.68 |  |  |  | (308 | ) |  | $ | 16.88 |
Nonvested - July 31, 2021 |  |  | 2,924 |  |  | $ | 16.30 |  |  |  | 1,605 |  |  | $ | 23.67 |
As of July 31, 2021, there was $36.0 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 2.2 years. Based on current probable performance, there is $10.9 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 July 31, 2021, the Company had 7.6 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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