SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Company issues stock appreciation rights and restricted stock units, including those with service, performance and market vesting conditions. The Company recognized share-based compensation expense of $7.6 million and $21.7 million for the thirteen and thirty-nine weeks ended October 31, 2015 , respectively, and $6.0 million and $17.4 million for the thirteen and thirty-nine weeks ended November 1, 2014 , respectively. The Company also recognized tax benefits related to share-based compensation of $2.6 million and $7.4 million for the thirteen and thirty-nine weeks ended October 31, 2015 , respectively, and $2.3 million and $6.6 million for the thirteen and thirty-nine weeks ended November 1, 2014 , respectively. Stock Options The following table summarizes stock option activity for the thirty-nine weeks ended October 31, 2015 : Number of Underlying Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life Outstanding at January 31, 2015 328,100 $ 64.64 Granted — — Exercised — — Forfeited or expired (34,300 ) 69.71 Outstanding at October 31, 2015 293,800 $ 64.05 $ — 1.9 Stock options exercisable at October 31, 2015 293,800 $ 64.05 $ — 1.9 The Company did not grant any stock options during the thirty-nine weeks ended October 31, 2015 or November 1, 2014 . No stock options were exercised during the thirty-nine weeks ended October 31, 2015 . The intrinsic value of stock options exercised was insignificant during the thirty-nine weeks ended November 1, 2014 . As of October 31, 2015 , there was no unrecognized compensation cost related to currently outstanding stock options. Stock Appreciation Rights The following table summarizes stock appreciation rights activity for the thirty-nine weeks ended October 31, 2015 : Number of Underlying Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life Outstanding at January 31, 2015 8,953,675 $ 40.28 Granted 709,758 21.90 Exercised — — Forfeited or expired (165,150 ) 39.70 Outstanding at October 31, 2015 9,498,283 $ 38.92 $ — 2.3 Stock appreciation rights exercisable at October 31, 2015 8,326,609 $ 40.31 $ — 1.4 Stock appreciation rights expected to become exercisable in the future as of October 31, 2015 1,039,928 $ 29.31 $ — 8.9 The Company estimates the fair value of stock appreciation rights using the Black-Scholes option-pricing model. The weighted-average assumptions used in the Black-Scholes option-pricing model for stock appreciation rights granted during the thirty-nine weeks ended October 31, 2015 and November 1, 2014 , were as follows: Executive Officers All Other Associates October 31, 2015 November 1, 2014 October 31, 2015 November 1, 2014 Grant date market price $ 22.46 $ 37.85 $ 21.99 $ 38.58 Exercise price $ 22.46 $ 38.44 $ 21.99 $ 38.79 Fair value $ 9.11 $ 14.04 $ 7.84 $ 13.56 Assumptions: Price volatility 49 % 50 % 49 % 50 % Expected term (years) 6.1 4.9 4.4 4.1 Risk-free interest rate 1.5 % 1.6 % 1.3 % 1.4 % Dividend yield 1.7 % 2.0 % 1.7 % 1.9 % Compensation expense for stock appreciation rights is recognized on a straight-line basis over the awards’ requisite service period, net of forfeitures. As of October 31, 2015 , there was $8.8 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock appreciation rights. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 17 months . No stock appreciation rights were exercised during the thirty-nine weeks ended October 31, 2015 . The total intrinsic value of stock appreciation rights exercised during the thirty-nine weeks ended November 1, 2014 was $1.5 million . The grant date fair value of stock appreciation rights that vested during the thirty-nine weeks ended October 31, 2015 and November 1, 2014 was $4.5 million and $7.3 million , respectively. Restricted Stock Units The following table summarizes activity for restricted stock units for the thirty-nine weeks ended October 31, 2015 : Service-based Restricted Stock Units Performance-based Restricted Stock Units Market-based Restricted Stock Units Number of Underlying Shares Weighted- Average Grant Date Fair Value Number of Underlying Shares Weighted- Average Grant Date Fair Value Number of Underlying Shares Weighted- Average Grant Date Fair Value Unvested at January 31, 2015 1,566,272 $ 37.81 205,420 $ 32.05 36,374 $ 40.13 Granted (1) 1,060,293 20.49 113,331 20.10 113,337 19.04 Adjustments for performance achievement — — (28,250 ) 36.14 — — Vested (437,946 ) 41.00 (48,668 ) 38.24 — — Forfeited (181,378 ) 35.62 (30,208 ) 36.19 (7,000 ) 28.31 Unvested at October 31, 2015 2,007,241 $ 28.16 211,625 $ 23.09 142,711 $ 23.96 (1) Includes 226,668 shares granted at 100% of their target vesting amount related to restricted stock units with performance vesting conditions. Fair value of both service-based and performance-based restricted stock units is calculated using the market price of the underlying common stock on the date of grant reduced for anticipated dividend payments on unvested shares. In determining fair value, the Company does not take into account performance-based vesting requirements. Performance-based vesting requirements are taken into account in determining the number of awards expected to vest. For market-based restricted stock units, fair value is calculated using a Monte Carlo simulation with the number of shares that ultimately vest dependent on the Company's total stockholder return measured against the total stockholder return of a select group of peer companies over a three-year period. For an award with performance-based or market-based vesting requirements, the number of shares that ultimately vest can vary from 0% to 200% of target depending on the level of achievement of performance criteria. Service-based restricted stock units are expensed on a straight-line basis over the total requisite service period, net of forfeitures. Performance-based restricted stock units subject to graded vesting are expensed on an accelerated attribution basis, net of forfeitures. Market-based restricted stock units without graded vesting features are expensed on a straight-line basis over the requisite service period, net of forfeitures. As of October 31, 2015 , there was $31.6 million , $1.9 million and $2.2 million of total unrecognized compensation cost, net of estimated forfeitures, related to service-based, performance-based and market-based restricted stock units, respectively. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 15 months , 14 months and 13 months for service-based, performance-based and market-based restricted stock units, respectively. Additional information pertaining to restricted stock units for the thirty-nine weeks ended October 31, 2015 and November 1, 2014 follows: (in thousands) October 31, 2015 November 1, 2014 Service-based restricted stock units: Total grant date fair value of awards granted $ 21,725 $ 20,847 Total grant date fair value of awards vested 17,956 16,470 Performance-based restricted stock units: Total grant date fair value of awards granted $ 2,278 $ 4,470 Total grant date fair value of awards vested 1,861 515 Market-based restricted stock units: Total grant date fair value of awards granted $ 2,158 $ 3,576 Total grant date fair value of awards vested — — The weighted-average assumptions used for market-based restricted stock units used in the Monte Carlo simulation during the thirty-nine weeks ended October 31, 2015 and November 1, 2014 were as follows: October 31, 2015 November 1, 2014 Grant date market price $ 22.46 $ 38.50 Fair value $ 19.04 $ 46.86 Assumptions: Price volatility 45 % 50 % Expected term (years) 2.8 2.8 Risk-free interest rate 0.9 % 0.8 % Dividend yield 3.5 % 2.1 % Average volatility of peer companies 34.0 % 37.3 % Average correlation coefficient of peer companies 0.3288 0.3786 |