Famous Footwear 2013 Annual Report Download - page 74

72 2013 BROWN SHOE COMPANY, INC. FORM 10-K
The following table sets forth the reclassifications out of accumulated other comprehensive (loss) income and the related
tax eect by component for 2013:
Amounts Reclassified from Accumulated Aected Line Item in the
($ thousands) Other Comprehensive Income (Loss) Consolidated Statements of Earnings
Net gains from derivative financial instruments (1) . . . . . . . . . . . $ (670) Costs of goods sold and selling
and administrative expenses
Tax provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229 Income tax (provision) benefit
Net gains from derivative financial instruments, net of tax. . . . . . (441)
Pension and other postretirement benefits actuarial loss (2) . . . . . 604 Selling and administrative expenses
Pension benefits prior service expense (2) . . . . . . . . . . . . . . . 13 Selling and administrative expenses
Pension and other postretirement benefits adjustments . . . . . . . 617
Tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (224) Income tax (provision) benefit
Pension and other postretirement benefits adjustments, net of tax . 393
Amounts reclassified from accumulated other comprehensive
(loss) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (48)
(1) See Note 12 and Note 13 to the consolidated financial statements for additional information related to derivative financial instruments.
(2) See Note 5 to the consolidated financial statements for additional information related to pension and other postretirement benefits.
15. SHARE-BASED COMPENSATION
The Company has share-based incentive compensation plans under which certain ocers, employees, and members of
the Board of Directors are participants and may be granted stock options, restricted stock, and stock performance awards.
ASC 718, Compensation – Stock Compensation, and ASC 505, Equity, require companies to recognize compensation
expense in an amount equal to the fair value of all share-based payments granted to employees over the requisite
service period for each award. In certain limited circumstances, the Company’s incentive compensation plan provides
for accelerated vesting of the awards, such as in the event of a change in control, qualified retirement, death, or
disability. The Company has a policy of issuing treasury shares in satisfaction of share-based awards.
Share-based compensation expense of $5.6 million, $6.5 million, and $5.6 million was recognized in 2013, 2012, and
2011, respectively, as a component of selling and administrative expenses. The following table details the share-based
compensation expense by plan and the total related income tax benefit for 2013, 2012, and 2011:
($ thousands) 2013 2012 2011
Expense for share-based compensation plans:
Stock options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 248 $ 215 $ 513
Stock performance awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 328 471
Restricted stock grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,319 5,946 4,649
Total share-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,567 6,489 5,633
Less: Income tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,136 2,507 2,107
Total share-based compensation expense, net of income tax benefit. . . . . . . . . . . . . . . . . . $ 3,431 $ 3,982 $ 3,526
In addition to the share-based compensation expense disclosed above, the Company also recognized cash-based expense
related to performance share units and cash awards granted under the performance share plans. The Company recognized
$3.7 million, $1.8 million, and $0.1 million in 2013, 2012, and 2011, respectively, in expense for cash-based awards under the
performance share plans.
The Company issued 481,916, 925,676, and 559,401 shares of common stock in 2013, 2012, and 2011, respectively, for restricted
stock grants, stock options exercised, and stock performance awards issued to employees and common and restricted stock
grants issued to directors. There were no significant modifications to any share-based awards in 2013, 2012, or 2011.
Restricted Stock
Under the Company’s incentive compensation plans, restricted stock of the Company may be granted at no cost to certain
ocers, key employees, and directors. Plan participants are entitled to cash dividends and voting rights for their respective
shares. Restrictions limit the sale or transfer of these shares during the requisite service period, which generally ranges from
one to eight years. Expense for restricted stock grants is recognized on a straight-line basis separately for each vesting
portion of the stock award based upon fair value of the award on the date of grant. The fair value of the restricted stock
grants is the quoted market price for the Company’s common stock on the date of grant.
The following table summarizes restricted stock activity for the year ended February 1, 2014:
Number of Nonvested Weighted-Average
Restricted Shares Grant Date Fair Value
Nonvested at February 2, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,110,325 $ 10.14
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411,735 17.47
Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (658,712) 6.22
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (163,250) 12.04
Nonvested at February 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,700,098 $ 13.25