XML 64 R21.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Stock-Based Compensation | 9 Months Ended
--- | ---
Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | Stock-Based Compensation In March 2006, the Board of Directors approved the Steven Madden, Ltd. 2006 Stock Incentive Plan (the “Plan”) under which nonqualified stock options, stock appreciation rights, performance shares, restricted stock, other stock-based awards and performance-based cash awards may be granted to employees, consultants and non-employee directors. The stockholders approved the Plan on May 26, 2006. On May 25, 2007, the stockholders approved an amendment to the Plan to increase the maximum number of shares that may be issued under the Plan from 2,700,000 to 3,487,500. On May 22, 2009, the stockholders approved a second amendment to the Plan that increased the maximum number of shares that may be issued under the Plan to 9,144,000. On May 25, 2012, the stockholders approved a third amendment to the Plan that increased the maximum number of shares that may be issued under the Plan to 15,644,000. The following table summarizes the number of shares of common stock authorized for use under the Plan, the number of stock-based awards granted (net of expired or cancelled awards) under the Plan and the number of shares of common stock available for the grant of stock-based awards under the Plan:
Common stock authorized | 15,644,000 |
Stock-based awards, including restricted stock and stock options granted, net of expired or cancelled | (11,089,000 | )
Common stock available for grant of stock-based awards as of September 30, 2012 | 4,555,000 |
Note P – Stock-Based Compensation (continued) Total equity-based compensation for the three and nine months ended September 30 is as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2012 |  | 2011 |  | 2012 |  | 2011
Restricted stock | $ | 3,319 |  |  | $ | 1,093 |  |  | $ | 8,177 |  |  | $ | 4,050 |
Stock options | 1,392 |  |  | 1,679 |  |  | 4,483 |  |  | 4,287 |
Total | $ | 4,711 |  |  | $ | 2,772 |  |  | $ | 12,660 |  |  | $ | 8,337 |
Equity-based compensation is included in operating expenses on the Company’s Condensed Consolidated Statements of Income. Stock Options Cash proceeds and intrinsic values related to total stock options exercised during the three- and nine-month periods ended September 30, 2012 and 2011 are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2012 |  | 2011 |  | 2012 |  | 2011
Proceeds from stock options exercised | $ | 2,040 |  |  | $ | 520 |  |  | $ | 6,991 |  |  | $ | 4,005 |
Intrinsic value of stock options exercised | $ | 4,213 |  |  | $ | 1,062 |  |  | $ | 12,445 |  |  | $ | 8,861 |
During the three and nine months ended September 30, 2012, options to purchase approximately 65,000 shares of common stock with a weighted average exercise price of $28.82 and options to purchase approximately 745,000 shares of common stock with a weighted average exercise price of $18.53 vested, respectively. During the three and nine months ended September 30, 2011, options to purchase approximately 86,000 shares of common stock with a weighted average exercise price of $24.61 and options to purchase approximately 697,000 shares of common stock with a weighted average exercise price of $15.23 vested, respectively. As of September 30, 2012, there were unvested options relating to 1,269,000 shares of common stock with a total of $7,845 of unrecognized compensation cost and an average vesting period of 2.1 years. The Company uses the Black-Scholes option-pricing model to estimate the fair value of options granted, which requires several assumptions. The expected term of the options represents the estimated period of time until exercise and is based on the historical experience of similar awards. Expected volatility is based on the historical volatility of the Company’s common stock. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant. With the exception of special dividends paid in November of 2005 and 2006, the Company historically has not paid regular cash dividends and thus the expected dividend rate is assumed to be zero. The following weighted average assumptions were used for stock options granted:
|  | 2012 |  | 2011
Volatility |  | 41.1% to 47.4% |  | 47.3% to 48.7%
Risk free interest rate |  | 0.47% to 0.87% |  | 0.61% to 1.78%
Expected life in years |  | 3.1 to 4.6 |  | 2.8 to 4.4
Dividend yield |  | 0.00% |  | 0.00%
Weighted average fair value |  | $14.05 |  | $10.91
Note P – Stock-Based Compensation (continued) Activity relating to stock options granted under the Company’s plans and outside the plans during the nine months ended September 30, 2012 is as follows:
|  | Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at January 1, 2012 |  | 2,703,000 |  |  | $ | 17.79 |  |  |  |  |  |
Granted |  | 213,000 |  |  | 40.30 |  |  |  |  |  |
Exercised |  | (423,000 | ) |  | 16.51 |  |  |  |  |  |
Cancelled/Forfeited |  | (39,000 | ) |  | 17.67 |  |  |  |  |  |
Outstanding at September 30, 2012 |  | 2,454,000 |  |  | $ | 19.96 |  |  | 4.2 years |  | $ | 58,312 |
Exercisable at September 30, 2012 |  | 1,185,000 |  |  | $ | 16.94 |  |  | 3.8 years |  | $ | 31,732 |
Restricted Stock The following table summarizes restricted stock activity during the nine months ended September 30, 2012 and 2011:
|  | 2012 |  | 2011
|  | Number of Shares |  | Weighted Average Fair Value at Grant Date |  | Number of Shares |  | Weighted Average Fair Value at Grant Date
Non-vested at January 1 |  | 671,000 |  |  | $ | 25.44 |  |  | 563,000 |  |  | $ | 17.20 |
Granted |  | 2,409,000 |  |  | 36.22 |  |  | 334,000 |  |  | 31.34 |
Vested |  | (172,000 | ) |  | 25.11 |  |  | (179,000 | ) |  | 14.93 |
Forfeited |  | (2,000 | ) |  | 38.10 |  |  | — |  |  | — |
Non-vested at September 30 |  | 2,906,000 |  |  | $ | 34.39 |  |  | 718,000 |  |  | $ | 24.34 |
As of September 30, 2012, there was $92,431 of total unrecognized compensation cost related to restricted stock awards granted under the Plan. This cost is expected to be recognized over a weighted average of 10.1 years. The Company determines the fair value of its restricted stock awards based on the market price of its common stock on the date of grant. On January 3, 2012, the Company and its Creative and Design Chief, Steven Madden, entered into an amendment of Mr. Madden’s existing employment agreement, pursuant to which, on February 8, 2012, Mr. Madden was granted 975,371 restricted shares of the Company’s common stock at the then market price of $41.01, which will vest in equal annual installments over a seven-year period commencing on December 31, 2017 and, thereafter, on each December 31 through December 31, 2023, subject to Mr. Madden’s continued employment on each such vesting date. Pursuant to the contract, on June 30, 2012, Mr. Madden exercised his right to receive an additional restricted stock award, and on July 3, 2012 he was granted 1,262,228 restricted shares of the Company's common stock at the then market price of $31.69, which will vest in the same manner as the prior grant.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration