Equity and Incentive Compensation Plans | 9 Months Ended |
Nov. 02, 2013 |
Notes to Financial Statements [Abstract] | ' |
Securities Repurchase Program | ' |
Repurchase Program |
On August 21, 2013, the Company’s Board of Directors approved a new $250 million securities repurchase program (the "Repurchase Program"). The Repurchase Program will expire when the Company has repurchased all securities authorized for repurchase thereunder, unless terminated earlier by the Company’s Board of Directors. There were no repurchases made under the Repurchase Program during the quarter ended November 2, 2013. |
During the nine months ended November 2, 2013 and October 27, 2012, under its then existing $600 million securities repurchase program, the Company repurchased 1.5 million and 3.1 million shares of its common stock, respectively, through open market purchases at a cost of $49.1 million and $75.0 million, respectively. There were no repurchases made under the Company's former $600 million securities repurchase program during the quarter ended October 27, 2012. As of November 2, 2013, there were no amounts remaining for additional share repurchases under the Company's former $600 million securities repurchase program, as the Company exhausted that share repurchase authorization during the second quarter of Fiscal 2013. |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Equity and Incentive Compensation Plans | ' |
Stock Incentive Plans |
During the quarter and nine months ended November 2, 2013, the Company recognized approximately $4.0 million and $11.6 million, respectively, in stock-based compensation expense. During the quarter and nine months ended October 27, 2012, the Company recognized approximately $4.8 million and $12.3 million, respectively, in stock-based compensation expense. As of November 2, 2013, there was $4.3 million and $14.9 million of unrecognized compensation cost related to unvested stock options and unvested restricted stock awards, respectively, which is expected to be recognized over a remaining weighted average vesting period of 1.6 years and 1.7 years, respectively. Restricted stock award grants, restricted unit award vestings and shares underlying stock option exercises during the nine months ended November 2, 2013 were issued out of treasury stock. In addition, restricted stock awards forfeited, as well as shares returned to cover employee tax withholding obligations related to stock option exercises and restricted stock vestings, were returned to treasury stock. |
On May 30, 2013, the Company’s shareholders approved certain amendments to the Company's 2003 Equity Incentive Plan, including increasing the total authorized shares reserved for issuance from 11.75 million to 13.4 million common shares. |
|
|
Stock Options |
The following table summarizes stock option activity for the nine months ended November 2, 2013: |
| | | | | | | |
| | | | | | | | | | | | | |
| Shares | | Weighted Average | | | | | | | |
Exercise Price | | | | | | | |
Options outstanding at beginning of period | 2,785,102 | | | $ | 25.61 | | | | | | | | |
| | | | | | |
Granted (1) | 101,400 | | | 30.73 | | | | | | | | |
| | | | | | |
Exercised | (269,314 | ) | | 20.56 | | | | | | | | |
| | | | | | |
Forfeited or expired | (104,100 | ) | | 29.67 | | | | | | | | |
| | | | | | |
Options outstanding at end of period | 2,513,088 | | | $ | 26.19 | | | | | | | | |
| | | | | | |
| | | | | | | | | | |
Vested and exercisable at November 2, 2013 | 2,007,739 | | | $ | 25.6 | | | | | | | | |
| | | | | | |
| | | | | | | | | | |
Options expected to vest in the future as of November 2, 2013 | 437,422 | | | $ | 28.59 | | | | | | | | |
| | | | | | |
|
| | | | | | | | | | | | | |
-1 | Awards vest annually over a three-year period and expire ten years after the grant date. | | | | | | | | | | | | |
The Company uses the Black-Scholes option pricing model to estimate the fair value of options granted as of the grant date. For the quarters and nine months ended November 2, 2013 and October 27, 2012, the fair value of options granted was estimated using the following weighted average assumptions: |
| | |
| | | | | | | | | | | | | |
| Quarter Ended | | Nine Months Ended | | |
| November 2, | | October 27, | | November 2, | | October 27, | | |
2013 | 2012 | 2013 | 2012 | | |
Expected volatility | — | % | | 53.4 | % | | 52.9 | % | | 54.6 | % | | |
Risk-free interest rate | — | % | | 0.6 | % | | 0.9 | % | | 0.9 | % | | |
Expected life (years) | — | | | 4.4 | | | 5 | | | 4.4 | | | |
| |
Dividend yield | — | | | — | | | — | | | — | | | |
| |
|
There were no options granted during the quarter ended November 2, 2013. The weighted average fair value of options granted during the quarter ended October 27, 2012 was $16.60 per share. The weighted average fair value of options granted during the nine months ended November 2, 2013 and October 27, 2012 was $14.09 and $12.44 per share, respectively. The Company estimates the volatility of its common stock on the date of grant based on an average of its historical common stock volatility and the implied volatility of publicly traded options on its common stock. |
|
| | | | | | | | | | | | | |
5 | Equity and Incentive Compensation Plans (Continued) | | | | | | | | | | | | |
|
Restricted Stock |
The following table summarizes restricted stock activity for the nine months ended November 2, 2013: |
|
| | | | | | | | | | | | | |
| Time - Based | | Performance - Based |
| Number of | | Weighted | | Number of | | Weighted |
Shares | Average | Shares | Average |
| Grant Date | | Grant Date |
| Fair Value | | Fair Value |
Restricted stock awards at February 2, 2013 | 461,396 | | | $ | 27.96 | | | 203,671 | | | $ | 27.81 | |
|
Granted | 401,228 | | (1) | 30.82 | | | 184,699 | | (2) | 30.86 | |
|
Vested | (187,942 | ) | | 27.5 | | | (82,633 | ) | | 27.92 | |
|
Forfeited | (59,917 | ) | | 29.06 | | | (11,300 | ) | | 30.73 | |
|
Restricted stock awards at November 2, 2013 | 614,765 | | | $ | 29.86 | | | 294,437 | | | $ | 29.58 | |
|
|
| | | | | | | | | | | | | |
-1 | Of this amount, 181,500 shares vest in equal installments in each of March 2014, 2015 and 2016; 179,100 shares vest in March 2016; 27,628 shares vest in May 2014; and 13,000 shares vest in equal installments in each of June 2014, 2015 and 2016. | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
-2 | Of this amount, 175,500 of these shares vest over a three-year period based on achievement of performance targets set bi-annually for each tranche of the grant. Based on Company performance, grantees may earn 50% to 150% of the shares granted with respect to each tranche. If the Company does not achieve the minimum threshold goal associated with such shares, grantees will not earn any shares with respect to that tranche. In addition, 3,138 of these shares relate to over achievement of the Spring 2012 tranche and vested in March 2013 and 6,061 of these shares relate to the over achievement of the Spring 2013 tranche and will vest in March 2014. | | | | | | | | | | | | |
|
Restricted Units |
The following table summarizes restricted unit activity for the nine months ended November 2, 2013: |
|
|
| | | | | | | | | | | | | |
| Time - Based | | Performance - Based |
| Number of | | Weighted | | Number of | | Weighted |
Shares | Average | Shares | Average |
| Grant Date | | Grant Date |
| Fair Value | | Fair Value |
Restricted unit awards at February 2, 2013 | 75,016 | | | $ | 19.58 | | | 46,003 | | | $ | 19.58 | |
|
Vested (1) | (75,016 | ) | | 19.58 | | | (46,003 | ) | | 19.58 | |
|
Restricted unit awards at November 2, 2013 | — | | | $ | — | | | — | | | $ | — | |
|
|
| | | | | | | | | | | | | |
-1 | All restricted unit awards vested in shares during the first quarter of Fiscal 2013. | | | | | | | | | | | | |
Long-Term Performance Compensation |
The Company maintains a long-term cash incentive program, the Restricted Cash Program (“RCP”) for vice-presidents and above. During the quarters ended November 2, 2013 and October 27, 2012, the Company recognized $2.6 million and $6.5 million, respectively, in compensation expense under the RCP inclusive of the effect of changes in estimates. During the nine months ended November 2, 2013 and October 27, 2012, the Company recognized $9.4 million and $14.7 million, respectively, in compensation expense under the RCP inclusive of the effect of changes in estimates. As of November 2, 2013, there was $30.2 million of unrecognized compensation cost under the RCP, which is expected to be recognized over a remaining weighted average deferral period of 2.7 years. |