STOCK-BASED COMPENSATION

The following table summarizes the Company’s stock-based compensation expense:



	Thirteen Weeks Ended
	May 5, 2018		April 29, 2017
	(In thousands)
Deferred Awards	$	3,813	$	3,265
Performance Awards	4,984		4,394
Total stock-based compensation expense ⁽¹⁾	$	8,797	$	7,659

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⁽¹⁾	During the First Quarter 2018 and the First Quarter 2017, approximately $1.0 million and $1.0 million, respectively, were included within cost of sales. All other stock-based compensation is included in selling, general, and administrative expenses.

The Company recognized a tax benefit related to stock-based compensation expense of approximately $2.3 million and $3.0 million during the First Quarter 2018 and the First Quarter 2017, respectively.

Awards Granted During the First Quarter 2018

The Company granted Deferred Awards and Performance Awards to various executives and Deferred Awards to members of our Board of Directors during the First Quarter 2018. Awards were also granted in connection with new hires. Generally, the Deferred Awards have a three year vesting period with one third of the award vesting annually. Generally, the Deferred Awards granted to members of the Board of Directors vest after one year. Performance Awards granted during the First Quarter 2018 have a three-year performance period, and, if earned, vest upon completion of the three-year performance period. Depending on the cumulative adjusted earnings per share achieved for the three-year performance period, adjusted operating margin expansion achieved for the three-year performance period, adjusted return on invested capital achieved as of the end of fiscal 2020, and our adjusted ROIC relative to that of companies in our peer group as of the end of the performance period, the percentage of Target Shares earned could range from 0% to 250%.

Changes in the Company’s Unvested Stock Awards during the First Quarter 2018

Deferred Awards



	Number of Shares		Weighted Average Grant Date Fair Value
	(In thousands)
Unvested Deferred Awards, beginning of period	420		$	82.30
Granted	129		123.82
Vested	(78	)	59.72
Forfeited	(3	)	103.05
Unvested Deferred Awards, end of period	468		$	97.36

Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $32.0 million as of May 5, 2018, which will be recognized over a weighted average period of approximately 2.4 years.

Performance Awards



	Number of Shares ⁽¹⁾		Weighted Average Grant Date Fair Value
	(In thousands)
Unvested Performance Awards, beginning of period	544		$	84.11
Granted	86		122.95
Shares earned in excess of target	347		70.09
Vested shares, including shares vested in excess of target	(513	)	70.09
Unvested Performance Awards, end of period	464		$	96.28

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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 in the table above is based on the participants earning their Target Shares at 100%. However, the cumulative expense recognized reflects changes in estimated adjusted earnings per share, adjusted operating margin expansion, and adjusted return on invested capital as they occur. Total unrecognized stock-based compensation expense related to unvested Performance Awards approximated $31.7 million as of May 5, 2018, which will be recognized over a weighted average period of approximately 2.0 years.