Stock-Based Compensation

6 Months Ended

Aug. 02, 2014

Note 5 - Stock-Based Compensation

Stock-based compensation includes stock options, cash-settled stock appreciation rights (SARs) and restricted stock awards. Additionally, we recognize stock-based compensation expense for the discount on shares sold to employees through our employee stock purchase plan. For the thirteen and twenty-six weeks ended August 2, 2014, stock-based compensation expense for the employee stock purchase plan was $10,000 before the income tax benefit of $4,000 and $19,000 before the income tax benefit of $8,000, respectively. For the thirteen and twenty-six weeks ended August 3, 2013, compensation expense for the employee stock purchase plan was $12,000 before the income tax benefit of $5,000 and $22,000 before the income tax benefit of $8,000, respectively.

The following table summarizes the share transactions for our restricted stock awards:

	Number of Shares			Weighted- Average Grant Date Fair Value
Restricted stock at February 1, 2014		525,259		$	19.84
Granted		212,060			25.55
Vested		(2,416	)		22.54
Forfeited		(16,400	)		21.71
Restricted stock at August 2, 2014		718,503		$	21.47

The weighted-average grant date fair value of stock awards granted during the twenty-six-week periods ended May 3, 2014August 2, 2014 and May 4, 2013August 3, 2013 was $25.55 and $20.80, respectively. The total fair value at grant date of previously non-vested stock awards that vested during the first six months of fiscal 2014 was $54,000. The total fair value at grant date of previously non-vested stock awards that vested during the six months of fiscal 2013 was $2.3 million.

The following section summarizes information regarding stock-based compensation expense recognized for restricted stock awards:

(In thousands)	Thirteen Weeks Ended August 2, 2014		Thirteen Weeks Ended August 3, 2013		Twenty-six Weeks Ended August 2, 2014		Twenty-six Weeks Ended August 3, 2013
Stock-based compensation expense before the recognized income tax benefit	$	1,054	$	775	$	1814	$	1706
Income tax benefit	$	410	$	300	$	717	$	646

As of August 2, 2014, approximately $9.6 million of unrecognized compensation expense remained related to both our performance-based and service-based restricted stock awards. The cost is expected to be recognized over a weighted average period of approximately 2.2 years. This incorporates our current assumptions with respect to the estimated requisite service period required to achieve the designated performance conditions for performance-based stock awards.

The following table summarizes the SARs activity:

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Outstanding at February 1, 2014		78,750		$	17.17
Granted		0			0.00
Forfeited		0			0.00
Exercised		(37,750	)		17.17
Outstanding at August 2, 2014		41,000		$	17.17		2.49

Exercisable at August 2, 2014		1,625		$	17.17		2.49

The fair value of these liability awards are remeasured, using a trinomial lattice model, at each reporting period until the date of settlement. Increases or decreases in stock-based compensation expense are recognized over the vesting period, or immediately for vested awards. The weighted-average fair value of outstanding, non-vested SAR awards was $3.15 as of August 2, 2014.

The following table summarizes information regarding stock-based compensation expense recognized for SARs:

(In thousands)	Thirteen Weeks Ended August 2, 2014			Thirteen Weeks Ended August 3, 2013		Twenty-six Weeks Ended August 2, 2014			Twenty-six Weeks Ended August 3, 2013
Stock-based compensation expense before the recognized income tax benefit	$	(39	)	$	143	$	(21	)	$	159
Income tax benefit	$	(15	)	$	55	$	(8	)	$	60

As of August 2, 2014, approximately $24,000 in unrecognized compensation expense remained related to non-vested SARs. This expense is expected to be recognized over a weighted-average period of approximately 0.5 years.

- 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.

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