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STOCK-BASED COMPENSATION | 3 Months Ended
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May 04, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following table summarizes the Company’s stock-based compensation expense (in thousands):
| Thirteen Weeks Ended
| May 4, 2013 |  | April 28, 2012
Deferred Awards | $ | 3,531 |  |  | $ | 2,377 |
Performance Awards | 1,901 |  |  | 620 |
Total stock-based compensation expense (1) | $ | 5,432 |  |  | $ | 2,997 |
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(1) | During the First Quarter 2013 and the First Quarter 2012, approximately $0.7 million and $0.2 million, respectively, were included in cost of sales. All other stock-based compensation is included in selling, general & administrative expenses.
The Company recognized a tax benefit related to stock-based compensation expense of approximately $2.2 million and $1.2 million for the First Quarter 2013 and the First Quarter 2012, respectively. Awards Granted During the First Quarter 2013 The Company granted Deferred Awards and Performance Awards to various executives and members of our Board of Directors during the First Quarter 2013. Awards were issued in connection with annual performance reviews, new hires and contractual obligations. Generally, the Deferred Awards have a three year vesting period with one third of the award vesting annually. Deferred Awards granted to the Board of Directors vest after one year. In general, the Performance Awards have three annual performance periods and one three-year cumulative performance period and, if earned, vest upon completion of the three year performance period. As required by her employment contract, the Performance Award granted to our Chief Executive Officer and President, if earned, has a one year vest period. Depending on the final adjusted operating income for the Company's performance periods, the percentage of Target Shares earned can be 0% and range up to 200%. Unfavorable weather conditions across the country resulted in the Company achieving revenues which were well below operating plan for the First Quarter 2013 (see “Management's Discussion and Analysis of Financial Condition and Results of Operations”). As a result, prior to the end of the First Quarter 2013, the Board of Directors chose to revise the operating plan for the 2013 fiscal year. The Board revised the plan in a manner which will require management to reverse the first quarter trends and to achieve results for the remainder of fiscal 2013 which exceed the results attained during the comparable period in fiscal 2012. Following the Board action, the Compensation Committee revised the performance target (and related threshold and maximum) for purposes of the Company's Performance Awards granted during the First Quarter 2013 to bring them in line with the revised operating plan. However, in order to take into account the First Quarter 2013 results, the revised threshold, target and maximum levels were set such that achievement of the revised performance target for fiscal 2013 will result in less than the number of Target Shares being earned. The revisions to Performance Award targets did not have a material effect on our first quarter financial statements. Changes in the Company’s Unvested Stock Awards during the First Quarter 2013 Deferred Awards
| Number of Shares |  | Weighted Average Grant Date Fair Value
| (in thousands) |  |
Unvested Deferred Awards, beginning of period | 560 |  |  | $ | 49.53 |
Granted | 356 |  |  | 48.36 |
Vested | (163 | ) |  | 49.28 |
Forfeited | (9 | ) |  | 48.57 |
Unvested Deferred Awards, end of period | 744 |  |  | $ | 49.04 |
Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $32.6 million as of May 4, 2013, which will be recognized over a weighted average period of approximately 2.8 years. Performance Awards
| Number of Shares (1) |  | Weighted Average Grant Date Fair Value
| (in thousands) |  |
Unvested Performance Awards, beginning of period | 172 |  |  | $ | 48.59 |
Granted | 203 |  |  | 47.86 |
Vested | (1 | ) |  | 45.38 |
Forfeited | (2 | ) |  | 47.68 |
Unvested Performance Awards, end of period | 372 |  |  | $ | 48.21 |
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(1) | For those awards in which the performance period is complete, the number of unvested shares is based on actual shares that will vest upon completion of the service period. For those awards in which the performance period is not yet complete, the number of unvested shares is based on the participants earning their Target Shares at 100%.
As of May 4, 2013, the cumulative expense recognized reflects changes in estimates as they occur. Total unrecognized stock-based compensation expense related to unvested Performance Awards approximated $11.6 million as of May 4, 2013, which will be recognized over a weighted average period of approximately 1.8 years. Stock Options At May 4, 2013, there were no unvested stock options. Outstanding Stock Options Changes in the Company’s outstanding stock options for the First Quarter 2013 were as follows:
| Number of Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life |  | Aggregate Intrinsic Value
| (in thousands) |  |  |  | (in years) |  | (in thousands)
Options outstanding, beginning of period | 84 |  |  | $ | 30.08 |  |  | 3.5 |  | $ | 1,633 |
Exercised | (41 | ) |  | 27.97 |  |  | N/A |  | 875 |
Forfeited | (1 | ) |  | 23.23 |  |  | N/A |  | 5 |
Options outstanding and exercisable, end of period | 42 |  |  | $ | 32.23 |  |  | 4.1 |  | $ | 714 |

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- 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
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