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Stock-Based Compensation | 9 Months Ended
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Jan. 30, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock-Based Compensation | 14. Stock-Based Compensation Equity Incentive Plan Description On September 16, 2015, our shareholders approved an equity incentive plan titled the Culp, Inc. 2015 Equity Incentive Plan (the “2015 Plan”). 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. As of January 30, 2022, there were 462,590 shares available for future equity-based grants under the 2015 Plan. Performance-Based Restricted Stock Units Senior Executives We grant performance-based restricted stock units to senior executives 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 performance targets that have been achieved may be adjusted based on a market-based total shareholder return component as defined in the related restricted stock unit agreements. Our performance-based restricted stock units granted to senior executives were measured based on their fair market value on the date of grant. 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 total shareholder return component using the Monte Carlo simulation model on our outstanding performance-based restricted stock units granted to senior executives on July 22, 2021:
| July 22, |
| 2021 |
Closing price of our common stock | $ 14. 75 |
Expected volatility of our common stock |  | 54.2 | %
Expected volatility of peer companies (1) | 45.7% - 101.5% |
Risk-free interest rate |  | 0.33 | %
Dividend yield |  | 3.00 | %
Correlation coefficient of peer companies (1) | 0.03 - 0.35 |
(1) The expected volatility and correlation coefficient of our peer companies for the July 22, 2021, grant date was based on peer companies that were approved by the Compensation Committee of our board of directors as an aggregate benchmark for determining the market-based total shareholder return component. Therefore, we disclosed ranges of the expected volatility and correlation coefficient for the companies that represented this peer group. Key Employees We grant 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. No market-based total shareholder return component was included in these awards. Overall The following table summarizes information related to our grants of performance-based restricted stock units associated with senior executives and key employees that are unvested as of January 30, 2022:
|  | (3) |  |  | (4) |  |  |  |  |  |  |  |
|  | Performance-Based |  |  | Restricted Stock |  |  |  |  |  |  |  |
|  | Restricted Stock |  |  | Units Expected |  |  |  |  |  |  |  |
Date of Grant |  | Units Awarded |  |  | to Vest |  |  | Price Per Share |  |  |  | Vesting Period
July 22, 2021 (1) |  |  | 122,477 |  |  |  | — |  |  | $ | 15.93 |  | (5) |  | 3 years
July 22, 2021 (2) |  |  | 21,900 |  |  |  | — |  |  | $ | 14.75 |  | (7) |  | 3 years
July 18, 2019 (1) |  |  | 93,653 |  |  |  | 2,421 |  |  | $ | 19.04 |  | (6) |  | 3 years
July 18, 2019 (2) |  |  | 29,227 |  |  |  | 1,450 |  |  | $ | 18.49 |  | (7) |  | 3 years
(1) | Performance-based restricted stock units awarded to senior executives.
(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) | Compensation cost is based on an assessment each reporting period to determine the probability of whether or not certain performance goals will be met and how many shares are expected to be earned as of the end of the vesting period. These amounts represent the number of shares that were expected to vest as of January 30, 2022.
(5) | Price per share represents the fair market value per share ($1.08 per $1, or an increase of $1.18 to the closing price of our common stock on the date of grant) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($14.75) for the performance-based component of the performance-based restricted stock units granted to senior executives on July 22, 2021.
(6) | Price per share represents the fair market value per share ($1.03 per $1, or an increase of $0.55 to the closing price of our common stock on the date of grant) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($18.49) for the performance-based component of the performance-based restricted stock units granted to senior executives on July 18, 2019.
(7) | Price per share represents the closing price of our common stock on the date of grant.
The following table summarizes information related to our performance-based restricted stock units that vested during the nine-month periods ending January 30, 2022, and January 31, 2021:
|  | Performance-Based |  |  |  |  |  |  | (4) |
|  | Restricted Stock |  |  | (3) |  |  | Price |
Fiscal Year |  | Units Vested |  |  | Fair Value |  |  | Per Share |
Fiscal 2022 (1) |  |  | 6,734 |  |  | $ | 115 |  |  | $ | 17.14 |
Fiscal 2022 (2) |  |  | 5,812 |  |  | $ | 100 |  |  | $ | 17.14 |
Fiscal 2021 (1) |  |  | 3,277 |  |  | $ | 33 |  |  | $ | 9.96 |
Fiscal 2021 (2) |  |  | 3,710 |  |  | $ | 37 |  |  | $ | 9.96 |
(1) | Performance-based restricted stock units vested by senior executives.
(2) | Performance-based restricted stock units vested by key employees.
(3) | Dollar amounts are in thousands.
(4) | Price per share is derived from the closing price of our common stock on the date the respective performance-based restricted stock units vested.
We recorded a credit to compensation expense totaling $40,000 and a charge to compensation of $127,000 within selling, general, and administrative expenses for the nine-month periods ending January 30, 2022, and January 31, 2021, respectively. Compensation cost is recorded based on an assessment each reporting period to determine the probability of whether or not certain performance targets will be met and how many shares are expected to be earned as of the end of the vesting period. If certain performance goals are not expected to be achieved, compensation cost will not be recorded, and any previously recognized compensation cost will be reversed. As of January 30, 2022, the remaining unrecognized compensation cost related to our performance-based restricted stock units was $11,000, which is expected to be recognized over a weighted average vesting period of 0.5 years. As of January 30, 2022, the performance-based restricted stock units that were expected to vest had a fair value totaling $4,000. Time-Based Restricted Stock Units The following table summarizes information related to our grants of time-based restricted stock unit awards associated with senior executives and key members of management that are unvested as of January 30, 2022:
|  | Time-Based |  |  |  |  |  |  |  |
|  | Restricted Stock |  |  | (1) |  |  |  |
Date of Grant |  | Units Awarded |  |  | Price Per Share |  | Vesting Period
July 22, 2021 |  |  | 37,991 |  |  | $ | 14.75 |  |  |  | 3 years
August 6, 2020 |  |  | 129,896 |  |  | $ | 11.01 |  |  |  | 3 years
July 18, 2019 |  |  | 34,399 |  |  | $ | 18.49 |  |  |  | 3 years
August 2, 2018 |  |  | 10,000 |  |  | $ | 24.35 |  |  |  | 5 years
(1) | Price per share represents closing price of common stock on the date the respective award was granted.
Overall We recorded compensation expense of $682,000 and $429,000 within selling, general, and administrative expenses associated with our time-based restricted stock unit awards for the nine-month periods ending January 30, 2022, and January 31, 2021, respectively. As of January 30, 2022, the remaining unrecognized compensation cost related to our time-based restricted stock units was $1.3 million, which is expected to be recognized over a weighted average vesting period of 1.8 years. As of January 30, 2022, the time-based restricted stock units that are expected to vest had a fair value totaling $1.9 million. Common Stock Award We granted a total of 8,357, 6,426, and 4,312 shares of common stock to our outside directors on January 3, 2022, October 1, 2021, and July 1, 2021, respectively. These shares of common stock vested immediately and were measured at their fair value on the date of grant. The fair value of these awards was $10.02, $13.03, and $16.24 per share on January 3, 2022, October 1, 2021. and July 1, 2021, respectively, which represents the closing price of our common stock on the date of grant. We granted a total of 4,563, 5,193 and 7,000 shares of common stock to our outside directors on January 4, 2021, October 1, 2020, and July 1, 2020, respectively. These shares of common stock vested immediately and were measured at their fair value on the date of grant. The fair value of these awards was $15.34, $13.48, and $10.00 per share on January 4, 2021, October 1, 2020, and July 1, 2020, respectively, which represents the closing price of our common stock on the date of grant. We recorded $238,000 and $210,000 of compensation expense within selling, general, and administrative expenses for common stock awards to our outside directors for the nine-month periods ending January 30, 2022, and January 31, 2021, respectively.

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- Definition The entire disclosure for share-based payment arrangement. + 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 + Details
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