Long-Term Incentive Compensation
 6 Months Ended
Jul. 29, 2023
Share-Based Payment Arrangement [Abstract]  
Long-Term Incentive Compensation
NOTE 10 | LONG-TERM INCENTIVE COMPENSATION
The Company records the fair value of share-based payments to employees in the unaudited Consolidated Statements of Income and Comprehensive Income as compensation expense, net of forfeitures, over the requisite service period. The Company issues shares of Common Stock from treasury, at average cost, upon exercise of stock options and vesting of restricted stock units, including those with performance conditions.
Long-Term Incentive Compensation
The following summarizes long-term incentive compensation expense:
Thirteen Weeks EndedTwenty-Six Weeks Ended
July 29, 2023July 30, 2022July 29, 2023July 30, 2022
(in thousands)
Restricted stock units$84 $1,084 $846 $2,277 
Stock options74 88 161 175 
Performance-based restricted stock units(5,839)1,448 (4,817)2,561 
Total share-based compensation$(5,681)$2,620 $(3,810)$5,013 
Cash-settled awards2,848 3,425 5,501 6,145 
Total long-term incentive compensation$(2,833)$6,045 $1,691 $11,158 
There was no stock compensation related income tax benefit, excluding consideration of valuation allowances, for the thirteen weeks ended July 29, 2023. The stock compensation related income tax benefit, excluding consideration of valuation allowances, recognized by the Company during the twenty-six weeks ended July 29, 2023 was $4.1 million. The stock compensation related income tax benefit, excluding consideration of valuation allowances, recognized by the Company during the thirteen and twenty-six weeks ended July 30, 2022 was $0.2 million and $2.9 million, respectively.
For the thirteen weeks ended July 29, 2023, there was no valuation allowance associated with the tax benefit. The valuation allowance associated with the tax benefit for the twenty-six weeks ended July 29, 2023 was $4.1 million. The valuation allowances associated with these tax benefits were $0.2 million and $2.9 million for the thirteen and twenty-six weeks ended July 30, 2022, respectively.
Equity Awards
Restricted Stock Units
During the twenty-six weeks ended July 29, 2023, the Company granted restricted stock units (“RSUs”) under the Second Amended and Restated Express, Inc. 2018 Incentive Compensation Plan (the "Plan"). The fair value of RSUs is generally determined based on the Company’s closing stock price on the day prior to the grant date in accordance with the Plan. The RSUs granted generally vest ratably over one to three years and the expense related to these RSUs is recognized using the straight-line attribution method over this vesting period.

The Company’s activity with respect to RSUs for the twenty-six weeks ended July 29, 2023 was as follows:
Number of
Shares
Grant Date
Weighted Average
Fair Value Per Share
(in thousands, except per share amounts)
Unvested - January 28, 2023
87 $45.38 
Granted1 $22.80 
Vested(78)$43.76 
Forfeited(5)$57.43 
Unvested - July 29, 2023
5 $57.31 
The total fair value of RSUs that vested during the twenty-six weeks ended July 29, 2023 and July 30, 2022 was $3.4 million and $4.9 million, respectively. As of July 29, 2023, there was approximately $0.1 million of total unrecognized compensation expense related to unvested RSUs, which is expected to be recognized over a remaining weighted-average period of approximately 1.0 year.
Stock Options
The Company’s activity with respect to stock options during the twenty-six weeks ended July 29, 2023 was as follows:
Number of
Shares
Grant Date
Weighted Average
Exercise Price Per Share		Weighted-Average Remaining Contractual Life (in years)Aggregate Intrinsic Value
(in thousands, except per share amounts and years)
Outstanding - January 28, 2023
143 $96.86 
Granted— $— 
Exercised— $— 
Forfeited or expired(5)$316.71 
Outstanding - July 29, 2023
138 $89.53 5.4$— 
Expected to vest at July 29, 2023
— $— 0$— 
Exercisable at July 29, 2023
138 $89.53 5.4$— 
As of July 29, 2023, there was no unrecognized compensation expense related to stock options.

Performance-Based Restricted Stock Units
During 2022, the Company granted performance-based RSUs to a limited number of senior executive-level employees, which entitle these employees to receive a specified number of shares of the Common Stock upon vesting based upon the achievement of certain performance conditions. The number of shares of Common Stock earned could range between 0% and 200% of the target amount of shares underlying the award depending upon performance achieved over a three-year performance period. The performance conditions of the awards include adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") targets and the Company's total shareholder return ("TSR") relative to a select group of peer companies. A Monte Carlo valuation model was used to determine the fair value of the awards. The TSR performance condition is a market condition. Therefore, the fair value of the portion of the awards which vest based on the TSR performance condition is fixed at the measurement date and is not revised based on actual performance during the three-year vesting period. The number of shares of Common Stock underlying the portion of the awards which vest based on the Company’s Adjusted EBITDA performance in relation to the pre-established targets will change during the three-year vesting period based on estimates. As of July 29, 2023, $1.2 million of total unrecognized compensation cost is expected to be recognized on performance-based RSUs over a remaining weighted-average period of 1.7 years.

Cash-Settled Awards
Time-Based Cash-Settled Awards
During the twenty-six weeks ended July 29, 2023, the Company granted time-based cash-settled awards to employees that vest ratably over three years. These awards are classified as liabilities and do not vary based on changes in the Company's stock price or financial performance. The expense related to these awards will be accrued using a straight-line method over this vesting period. As of July 29, 2023, $16.8 million of total unrecognized compensation cost is expected to be recognized on cash-settled awards over a remaining weighted-average period of 1.5 years.

Performance-Based Cash-Settled Awards
During the twenty-six weeks ended July 29, 2023, the Company granted performance-based cash-settled awards to a limited number of senior executive-level employees. These awards are classified as liabilities, are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement with compensation expense being recognized in proportion to the completed requisite service period up until date of settlement. The amount of cash earned ranges between 0% and 200% of the target amount depending upon performance achieved over a three-year performance period commencing on the first day of the Company’s 2023 fiscal year and ending on the last day of the Company’s 2025 fiscal year. The performance conditions of the award include Adjusted EBITDA targets and the Company's TSR relative to a select group of peer companies. The fair value of the awards will change based on estimates of the Company’s Adjusted EBITDA performance in relation to
the pre-established targets. A Monte Carlo valuation model was used to determine the fair value of the awards. As of July 29, 2023, $3.2 million of total unrecognized compensation cost is expected to be recognized on performance-based cash-settled awards over a remaining weighted-average period of 2.7 years.