Abercrombie & Fitch 2015 Annual Report Download - page 61

Table of Contents ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
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The Company issues shares of Common Stock from treasury stock upon exercise of stock options and stock appreciation rights
and vesting of restricted stock units, including those converted from performance share awards. As of January 30, 2016, the
Company had sufficient treasury stock available to settle stock options, stock appreciation rights, restricted stock units and
performance share awards outstanding. Settlement of stock awards in Common Stock also requires that the Company have sufficient
shares available in stockholder-approved plans at the applicable time.
In the event, at each reporting date during which share-based compensation awards remain outstanding, there are not sufficient
shares of Common Stock available to be issued under the Amended and Restated Abercrombie & Fitch Co. 2007 Long-Term
Incentive Plan (the “2007 LTIP”) and the Abercrombie & Fitch Co. 2005 Long-Term Incentive Plan (the “2005 LTIP”), or under
a successor or replacement plan, the Company may be required to designate some portion of the outstanding awards to be settled
in cash, which would result in liability classification of such awards. The fair value of liability-classified awards is re-measured
each reporting date until such awards no longer remain outstanding or until sufficient shares of Common Stock become available
to be issued under the existing plans or under a successor or replacement plan. As long as the awards are required to be classified
as a liability, the change in fair value would be recognized in current period expense based on the requisite service period rendered.
Plans
As of January 30, 2016, the Company had two primary share-based compensation plans: the 2005 LTIP, under which the Company
grants stock appreciation rights, restricted stock units and performance share awards to associates of the Company and non-associate
members of the Company's Board of Directors, and the 2007 LTIP, under which the Company grants stock appreciation rights,
restricted stock units and performance share awards to associates of the Company. The Company also has four other share-based
compensation plans under which it granted stock options and restricted stock units to associates of the Company and non-associate
members of the the Company's Board of Directors in prior years.
The 2007 LTIP, a stockholder-approved plan, permits the Company to annually grant awards covering up to 2.0 million of underlying
shares of the Company's Common Stock for each type of award, per eligible participant, plus any unused annual limit from prior
years. The 2005 LTIP, a stockholder-approved plan, permits the Company to annually grant awards covering up to 250,000 of
underlying shares of the Company's Common Stock for each award type to any associate of the Company (other than the Chief
Executive Officer (the "CEO")) who is subject to Section 16 of the Securities Exchange Act of 1934, as amended, at the time of
the grant, plus any unused annual limit from prior years. In addition, any non-associate director of the Company is eligible to
receive awards under the 2005 LTIP. Under both plans, stock appreciation rights and restricted stock units vest primarily over four
years for associates, while performance share awards are primarily earned and vest over the performance period. Under the 2005
LTIP, restricted stock units typically vest after approximately one year for non-associate directors of the Company. Under both
plans, stock options have a ten-year term and stock appreciation rights have up to a ten-year term, subject to forfeiture under the
terms of the plans. The plans provide for accelerated vesting if there is a change of control and certain additional conditions are
met as defined in the plans.
Stock Options
The following table summarizes stock option activity for Fiscal 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 (57,100) 72.16
Outstanding at January 30, 2016 271,000 $ 63.05 $ 354,740 1.8
Stock options exercisable at January 30, 2016 271,000 $ 63.05 $ 354,740 1.8
The Company did not grant any stock options during Fiscal 2015, Fiscal 2014 and Fiscal 2013. The total intrinsic value of stock
options exercised was insignificant during Fiscal 2015, Fiscal 2014, and Fiscal 2013.
The grant date fair value of stock options that vested was insignificant during Fiscal 2015, Fiscal 2014, and Fiscal 2013.