Share-Based Plans
 3 Months Ended
Apr. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
SHARE-BASED PLANS
SHARE-BASED PLANS

We have issued nonqualified stock options, restricted stock awards, restricted stock units, and performance share units under our shareholder-approved equity compensation plans.  Our restricted stock awards, restricted stock units, and performance share units, as described below and/or in note 7 to the consolidated financial statements in our 2016 Form 10-K, are expensed and reported as non-vested shares.  We recognized share-based compensation expense of $7.9 million and $8.5 million in the first quarter of 2017 and the first quarter of 2016, respectively.

Non-vested Restricted Stock
The following table summarizes the non-vested restricted stock awards and restricted stock units activity for the first quarter of 2017:

Number of Shares
Weighted Average Grant-Date Fair Value Per Share
Outstanding non-vested restricted stock at January 28, 2017
771,521

$
42.12

Granted
180,196

51.49

Vested
(311,180
)
43.27

Forfeited
(9,893
)
42.71

Outstanding non-vested restricted stock at April 29, 2017
630,644

$
44.22



The non-vested restricted stock units granted in the first quarter of 2017 generally vest and are expensed on a ratable basis over three years from the grant date of the award, if certain threshold financial performance objectives are achieved and the grantee remains employed by us through the vesting dates.

The non-vested restricted stock awards granted in 2013 have met the threshold financial performance objective and will vest in 2018 on the five-year anniversary of the grant date of the award.

Performance Share Units
In the first quarter of 2017, we issued performance share units (“PSUs”) to certain members of management, which vest if certain financial performance objectives are achieved over a three-year performance period and the grantee remains employed by us during that period. The financial performance objectives for each fiscal year within the three-year performance period are approved by the Compensation Committee of our Board of Directors during the first quarter of the respective fiscal year.

As a result of the process used to establish the financial performance objectives, we will only meet the requirements of establishing a grant date for the PSUs when we communicate the financial performance objectives for the third fiscal year of the award to the award recipients, which will then trigger the service inception date, the fair value of the awards, and the associated expense recognition period. If we meet the applicable threshold financial performance objectives over the three-year performance period and the grantee remains employed by us through the end of the performance period, the PSUs will vest on the first trading day after we file our Annual Report on Form 10-K for the last fiscal year in the performance period.

We have begun or expect to begin recognizing expense related to PSUs as follows:
Issue Year
Outstanding PSUs at April 29, 2017
Actual Grant Date
Expected Valuation (Grant) Date
Actual or Expected Expense Period
2015
251,312

March 2017
 
Fiscal 2017
2016
342,150

 
March 2018
Fiscal 2018
2017
270,427

 
March 2019
Fiscal 2019
Total
863,889

 
 
 


The number of shares to be distributed upon vesting of the PSUs depends on the average performance attained during the three-year performance period as compared to the targets defined by the Compensation Committee, and may result in the distribution of an amount of shares that is greater or less than the number of PSUs granted, as defined in the award agreement. During the first quarter of 2017, the PSUs issued in 2014 vested with an average performance attainment greater than the targets established. At April 29, 2017, we estimate the attainment of an average performance that is greater than the targets established for the PSUs issued in 2015. During the first quarter of 2017, we recognized $4.5 million in share-based compensation expense related to PSUs.

The following table summarizes the activity related to PSUs for the first quarter of 2017:
 
Number of Shares
Weighted Average Grant-Date Fair Value Per Share
Outstanding performance share units at January 28, 2017
360,357

$
41.04

Granted
259,042

51.49

Vested
(360,357
)
41.04

Forfeited
(7,730
)
51.49

Outstanding performance share units at April 29, 2017
251,312

$
51.49



Stock Options
The following table summarizes stock option activity for the first quarter of 2017:

Number of Options
Weighted Average Exercise Price Per Share
Weighted Average Remaining Contractual Term (years)
Aggregate Intrinsic Value (000's)
Outstanding stock options at January 28, 2017
589,675

$
38.75

 
 
Exercised
(104,987
)
36.88

 
 
Forfeited
(5,000
)
36.93

 
 
Outstanding stock options at April 29, 2017
479,688

$
39.18

2.2
$
5,424

Vested or expected to vest at April 29, 2017
479,688

$
39.18

2.2
$
5,424

Exercisable at April 29, 2017
425,999

$
39.55

2.1
$
4,660



The stock options granted in prior years vest in equal amounts on the first four anniversaries of the grant date and have a contractual term of seven years. With the adoption of ASU 2016-09, we have eliminated our annual forfeiture rate assumption.

The following activity occurred under our share-based plans during the respective periods shown:
 
First Quarter
(In thousands)
2017
 
2016
Total intrinsic value of stock options exercised
$
1,538

 
$
800

Total fair value of restricted stock vested
16,200

 
9,783

Total fair value of performance shares vested
21,026

 
—



The total unearned compensation cost related to all share-based awards outstanding, excluding PSUs issued in 2016 and 2017, at April 29, 2017 was approximately $30.2 million.  This compensation cost is expected to be recognized through March 2020 based on existing vesting terms with the weighted-average remaining expense recognition period being approximately 1.3 years from April 29, 2017.