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Stock-Based Compensation | 6 Months Ended
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Oct. 28, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | 20. Stock-Based Compensation Equity Incentive Plan Description On September 16, 2015, our shareholders approved an equity incentive plan entitled the Culp, Inc. 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan updated and replaced our 2007 Equity Incentive Plan (the “2007 Plan”) as the vehicle for granting new equity-based awards substantially similar to those authorized under the 2007 Plan. In general, the 2015 Plan authorizes the grant of stock options intended to qualify as incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, and other equity and cash related awards as determined by our Compensation Committee. An aggregate of 1,200,000 shares of common stock were authorized for issuance under the 2015 Plan, with certain sub-limits that would apply with respect to specific types of awards that may be issued as defined in the 2015 Plan. In connection with the approval of the 2015 Plan, no further awards will be granted under the 2007 Plan, but outstanding awards under the 2007 Plan will be settled in accordance with their terms. At October 28, 2018, there were 941,528 shares available for future equity-based grants under our 2015 plan. Performance Based Restricted Stock Units Executive Management (NEOs) Fiscal 2019 and 2018 On August 2, 2018 (Fiscal 2019), and July 13, 2017 (Fiscal 2018), we granted performance-based restricted stock units to NEOs which could earn up to a certain number of shares of common stock if certain performance targets are met over a three-fiscal year performance period as defined in the related restricted stock unit agreements. The number of shares of common stock that are earned based on the performance targets that have been achieved will be adjusted based on a market-based total shareholder return component as defined in the related restricted stock unit agreements. Compensation cost was measured based at the fair market value on the date of grant (August 2, 2018 and July 13, 2017). The fair market value per share was determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock for the performance-based component. The following table provides assumptions used to determine the fair market value of the market-based shareholder return component using the Monte Carlo simulation model on the date of grants noted above:
|  | Fiscal 2019 |  |  | Fiscal 2018 |
Closing price of our common stock |  | $ | 24.35 |  |  | $ | 32.50 |
Expected volatility of our common stock |  |  | 33.5 | % |  |  | 31.0 | %
Expected volatility of peer companies |  |  | 16.0 | % |  |  | 16.5 | %
Risk-free interest rate |  |  | 2.74 | % |  |  | 1.56 | %
Dividend yield |  |  | 1.35 | % |  |  | 1.66 | %
Correlation coefficient of peer companies |  |  | 0.47 |  |  |  | 0.46 |
Fiscal 2017 On July 14, 2016 we granted performance-based restricted stock units to NEOs which could earn up to a certain number of shares of common stock if certain performance targets were met over a three-fiscal year performance period as defined in the related restricted stock unit agreements. These awards were measured based on the fair market value (closing price of our common stock) on the date of grant. No market-based total shareholder return component was included in this award. Key Employees and a Non-Employee Fiscal 2019, 2018, and 2017 We granted performance-based restricted stock units which could earn up to a certain number of shares of common stock if certain performance targets are met over a three-fiscal year performance period as defined in the related restricted stock unit agreements. Our performance based restricted stock units granted to key employees were measured based on the fair market value (the closing price of our common stock) on the date of grant. Our performance based restricted stock units granted to a non-employee (fiscal 2017 only) were measured based on the fair market value (the closing price of our common stock) at the earlier date of when the performance criteria are met or the end of the reporting period. No market-based total shareholder return component was included in these awards. The following table summarizes information related to our grants of performance based restricted stock units associated with NEOs and key employees that are currently unvested:
Date of Grant |  | (3) Restricted Stock Units Awarded |  |  | Price Per Share |  |  | Vesting Period |
August 2, 2018 (1) |  |  | 86,599 |  |  | $ | 18.51 | (4) |  |  | 3 years |
August 2, 2018 (2) |  |  | 47,800 |  |  | $ | 24.35 | (6) |  |  | 3 years |
July 13, 2017 (1) |  |  | 78,195 |  |  | $ | 31.85 | (5) |  |  | 3 years |
July 13, 2017 (2) |  |  | 44,000 |  |  | $ | 32.50 | (6) |  |  | 3 years |
July 14, 2016 (1) (2) |  |  | 107,880 |  |  | $ | 28.00 | (6) |  |  | 3 years |
(1) | Performance-based restricted stock units awarded to NEOs.
(2) | Performance-based restricted stock units awarded to key employees.
(3) | Amounts represent the maximum number of common stock shares that could be earned if certain performance targets are met as defined in the related restricted stock unit agreements.
(4) | Price per share represents the fair market value per share ($0.76 per $1 or a reduction of $5.84 to the closing price of the our common stock) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($24.35) for the performance-based components of the performance-based restricted stock units granted to our NEOs on August 2, 2018.
(5) | Price per share represents the fair market value per share ($0.98 per $1 or a reduction of $0.65 to the closing price of the our common stock) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($32.50) for the performance-based components of the performance-based restricted stock units granted to our NEOs on July 13, 2017.
(6) | Price per share represents the closing price of our common stock on the date of grant.
The following table summarizes information related to our grants of performance-based restricted stock units associated with a non-employee that are currently unvested:
Date of Grant |  | (1) Restricted Stock Units Awarded |  |  | Price Per Share |  |  | Vesting Period |
July 14, 2016 |  |  | 11,549 |  |  | $ | 22.31 | (2) |  |  | 3 years |
(1) | Amounts represent the maximum number of common stock shares that could be earned if certain performance targets are met as defined in the related restricted stock unit agreements.
(2) | The respective grant was unvested at the end of our reporting period. Accordingly, the price per share represents the closing price of our common stock on October 28, 2018, the end of our reporting period.
The following table summarizes information related to our performance based restricted stock units that vested during the six-month periods ending October 28, 2018 and October 29, 2017:
Fiscal Year |  | Common Stock Shares Vested |  |  | (3) Weighted Average Fair Value |  |  | Price Per Share |
Fiscal 2019 (1) |  |  | 107,553 |  |  | $ | 3,466 |  |  | $ | 32.23 | (4)
Fiscal 2019 (2) |  |  | 10,364 |  |  | $ | 320 |  |  | $ | 30.90 | (5)
Fiscal 2018 (1) |  |  | 102,845 |  |  | $ | 1,820 |  |  | $ | 17.70 | (4)
Fiscal 2018 (2) |  |  | 16,000 |  |  | $ | 520 |  |  | $ | 32.50 | (5)
(1) | NEOs and key employees.
(2) | Non-employee
(3) | Dollar amounts are in thousands.
(4) | Price per share represents closing price of our common stock on the date of grant.
(5) | The respective grant vested during the first quarter of fiscal 2019 or 2018, respectively. Accordingly, the price per share represents the closing price of our common stock on the date the award vested.
The performance based restricted stock units that vested during the six-months ending October 28, 2018, and October 29, 2017, had a fair value totaling $3.6 million and $3.9 million, respectively. Overall We recorded a credit to compensation expense of $216,000 and a charge to compensation expense totaling $1.4 million within selling, general, and administrative expenses for the six-month periods ending October 28, 2018 and October 29, 2017, respectively. Compensation cost is recorded based on an assessment each reporting period of the probability that certain performance goals will be met during the vesting period. If performance goals are not probable of occurrence, compensation cost will not be recognized and any recognized compensation cost would be reversed. At October 28, 2018, the remaining unrecognized compensation cost related to our performance based restricted stock units was $1.6 million, which is expected to be recognized over a weighted average vesting period of 2.3 years. At October 28, 2018, the performance based restricted stock units that were expected to vest had a fair value totaling $2.4 million. Time Vested Restricted Stock Units Fiscal 2019 On August 2, 2018, we granted 11,200 shares of restricted stock units to certain key employees. Of the 11,200 shares of restricted stock units granted, 10,000 had a vesting period of 59 months and 1,200 had a vesting period 11 months, respectively. These awards were measured at their fair market value, which was $24.35 per share, and represents the closing price of our common stock at the date of grant. Fiscal 2018 Grant On July 13, 2017, an employee was granted 1,200 shares of time vested restricted stock units which vested over the requisite service period of 11 months. This award was measured at its fair market value, which was $32.50 per share, and represented the closing price of our common stock on the date of grant. During the first quarter of fiscal 2019, 1,200 shares of common stock associated with this grant vested and had a weighted average grant date fair value of $39,000 or $32.50 per share. Fiscal 2017 Grant On July 14, 2016, an employee was granted 1,200 shares of time vested restricted stock units which vested over the requisite service period of 11 months. This award was measured at its fair market value, which was $28 per share, and represented the closing price of our common stock on the date of grant. During the first quarter of fiscal 2018, 1,200 shares of common stock associated with this grant vested and had a weighted average grant date fair value of $34,000 or $28 per share. Overall We recorded compensation expense of $26,000 and $17,000 within selling, general, and administrative expense associated with our time vested restricted stock unit awards for the six-month periods ending October 28, 2018 and October 29, 2017, respectively. At October 28, 2018, the remaining unrecognized compensation cost related to our time vested restricted stock units was $252,000, which is expected to be recognized over a weighted average vesting period of 4.3 years. At October 28, 2018, the time vested restricted stock awards that were expected to vest had a fair value totaling $250,000. Common Stock Awards We granted a total of 3,600 and 4,800 shares of common stock to our outside directors on October 1, 2018, and October 2, 2017, respectively. These shares of common stock vested immediately and were valued based on the fair market value on the date of grant. The fair value of these awards were $23.45 and $33.20 per share, on October 1, 2018, and October 2, 2017, which represents the closing price of our common stock on the date of grant. We recorded $84,000 and $159,000 of compensation expense within selling, general, and administrative expense for these common stock awards for the six-month periods ending October 28, 2018 and October 29, 2017, respectively.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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