DSW 2014 Annual Report Download - page 60

Table of Contents
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PSUs receive dividend equivalents in the form of additional PSUs, which are subject to the same restrictions and forfeiture provisions as the original award.
Consistent with RSUs, the grant date fair value of PSUs is based on the closing market price of DSW Class A Common Shares on the date of grant. As of
January 31, 2015, the total compensation cost related to nonvested PSUs not yet recognized was approximately $3.9 million with a weighted average
expense recognition period remaining of 2.0 years. The weighted average exercise price for all PSUs is zero.
For the periods presented, the following tables summarize PSU activity, GDFV and aggregate intrinsic value (units and intrinsic value in thousands):
Fiscal
2014
2013
Units
GDFV
Units
GDFV
Outstanding beginning of year 69
$ 31.76
—
$ —
Granted 111
$ 34.52
69
$ 31.76
Vested —
—
—
$ —
Forfeited (7)
$ 32.74
—
$ —
Outstanding end of year 173
$ 33.50
69
$ 31.76
Weighted Average
Aggregate
Remaining
Intrinsic
As of January 31, 2015:
Units
GDFV
Contract Life
Value
PSUs expected to vest
142
$ 33.50
1.9 years
$ 5,052
Director Stock Units- The Company issues stock units to directors who are not employees. Stock units are automatically granted to each non-employee
director on the date of each annual meeting of shareholders based on the fair market value of DSW Class A Common Shares. In addition, each director
eligible to receive compensation for board service may elect to have the cash portion of such directors’ compensation paid in the form of stock units. Stock
units granted to directors vest immediately and are settled upon the director terminating service from the board. For grants beginning in fiscal 2012, directors
were given the option to exercise their units at a specified point in the future or upon completion of service. Stock units granted to directors, which are not
subject to forfeiture, are considered to be outstanding for the purposes of computing basic earnings per share. The exercise price of the director stock units is
zero. The following table summarizes director stock unit activity (units in thousands):
Fiscal
2014
2013
2012
Outstanding beginning of year 330
316
384
Granted 52
34
54
Exercised (22)
(20)
(122)
Outstanding end of year 360
330
316
Stock Appreciation Rights ("SARs")- The 2005 Plan also covers the issuance of SARs. DSW Inc. entered into a SARs agreement with a non-employee on June
16, 2014, wherein DSW Inc. granted a total of 0.5 million SARs in two equal tranches with respect to DSW Class A Common Shares. The SARs have an
expiration date of June 15, 2017, and will vest and become exercisable on the earlier of the one year anniversary of contract termination or the second
anniversary of the Grant Date. Each SAR entitles the participant to receive, upon exercise, an amount in cash equal to the excess of the reported closing price
of a Class A Common Share on the date of exercise over the applicable exercise price. The exercise price per the First Tranche SAR is $25.24 and the exercise
price per the Second Tranche SAR is $27.38. For the year ended January 31, 2015, the total expense related to SARs was approximately $1.7 million.
The fair value of the SARs was estimated using the Black-Scholes pricing model with the following assumptions for the period presented:
F- 20
Source: DSW Inc., 10-K, March 26, 2015 Powered by Morningstar® Document Research℠
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