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Share-Based Compensation | 9 Months Ended
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Oct. 30, 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 39 weeks ended October 30, 2021 was $7.9 million ($5.9 million, net of tax) and $29.4 million ($22.2 million, net of tax), respectively, and 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. 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 retirement eligible date, if earlier. A summary of the Company’s stock option activity for the 39 weeks ended October 30, 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 |  |  | 478 |  |  | $ | 31.46 |  |  |  |  |  |  |  |  |
Exercised (1) |  |  | (771 | ) |  | $ | 16.33 |  |  |  |  |  |  |  |  |
Outstanding - October 30, 2021 |  |  | 3,647 |  |  | $ | 16.74 |  |  |  | 4.5 |  |  | $ | 29,226 |
Vested and expected to vest - October 30, 2021 |  |  | 2,503 |  |  | $ | 16.59 |  |  |  | 3.2 |  |  | $ | 14,678 |
Exercisable - October 30, 2021 (2) |  |  | 1,788 |  |  | $ | 16.28 |  |  |  | 1.7 |  |  | $ | 13,345 |
(1) | Options exercised during the 39 weeks ended October 30, 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 October 30, 2021.
Cash received from the exercise of stock options was $13.1 million for the 39 weeks ended October 30, 2021. The actual tax benefit realized from share-based payments totaled $4.3 million for the 39 weeks ended October 30, 2021. There were no stock options exercised during the 39 weeks ended October 31, 2020. As of October 30, 2021, there was $7.5 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 |  | 39 Weeks Ended
|  | October 30, |  | October 31,
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 |
|  | October 30, 2021 |  |  | October 30, 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 |  |  | 699 |  |  | $ | 32.47 |  |  |  | 337 |  |  | $ | 39.54 |
Vested |  |  | (1,478 | ) |  | $ | 14.90 |  |  |  | (418 | ) |  | $ | 22.22 |
Cancelled |  |  | (200 | ) |  | $ | 13.49 |  |  |  | (324 | ) |  | $ | 17.72 |
Nonvested - October 30, 2021 |  |  | 2,719 |  |  | $ | 16.15 |  |  |  | 1,463 |  |  | $ | 21.10 |
As of October 30, 2021, there was $30.8 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 1.9 years. Based on current probable performance, there is $9.3 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 October 30, 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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