STOCK-BASED COMPENSATION

9 Months Ended

Nov. 02, 2019

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement [Text Block]

STOCK-BASED COMPENSATION

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


	Thirteen Weeks Ended						Thirty-nine Weeks Ended
	November 2, 2019		November 3, 2018		November 2, 2019		November 3, 2018
	(In thousands)
Deferred Awards	$	4,494	$	2,685	$	14,237	$	10,031
Performance Awards	(2,143)		1,791		(615)		10,662
Total stock-based compensation expense ⁽¹⁾	$	2,351	$	4,476	$	13,622	$	20,693

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⁽¹⁾During the Third Quarter 2019 and the Third Quarter 2018, approximately $0.9 million and $1.1 million, respectively, were included within cost of sales. During Year-To-Date 2019 and the Year-To-Date 2018, approximately $2.8 million and $3.0 million, respectively, were included within cost of sales (exclusive of depreciation and amortization). 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 $3.6 million and $5.5 million during Year-To-Date 2019 and Year-To-Date 2018, respectively.

Changes in the Company’s Unvested Stock Awards during Year-To-Date 2019

Deferred Awards


	Number of Shares	Weighted Average Grant Date Fair Value
	(In thousands)
Unvested Deferred Awards, beginning of period	299	$	99.98
Granted	256	103.18
Vested	(120)	104.53
Forfeited	(44)	112.20
Unvested Deferred Awards, end of period	391	$	99.29

Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $24.5 million as of November 2, 2019, which will be recognized over a weighted average period of approximately 1.9 years.

Performance Awards


	Number of Shares ⁽¹⁾	Weighted Average Grant Date Fair Value
	(In thousands)
Unvested Performance Awards, beginning of period	352	$	90.66
Granted	194	99.57
Shares earned in excess of target	181	75.83
Vested shares, including shares earned in excess of target	(349)	75.83
Forfeited	(26)	109.54
Unvested Performance Awards, end of period	352	$	101.27

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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, adjusted return on invested capital, and ranking of our adjusted return on invested capital relative to that of companies in our peer group as they occur. Total unrecognized stock-based compensation expense related to unvested Performance Awards approximated $15.7 million as of November 2, 2019, which will be recognized over a weighted average period of approximately 2.0 years.