Famous Footwear 2014 Annual Report Download - page 74

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2014 BROWN SHOE COMPANY, INC. FORM 10-K 73
The weighted-average remaining contractual term of stock options outstanding and currently exercisable at January 31, 2015
was 2.9 years and 2.6 years, respectively. The aggregate intrinsic value of stock options outstanding and currently
exercisable at January 31, 2015 was $4.9 million and $4.1 million, respectively. Intrinsic value for stock options is calculated
based on the exercise price of the underlying awards as compared to the quoted price of the Company’s common stock as
of the reporting date.
The following table summarizes stock option activity for 2014 under the current and prior plans:
Number of Weighted-Average
Options Exercise Price
Outstanding at February 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 751,638 $16.88
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – –
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (316,835) 15.21
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,000) 24.36
Canceled or expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – –
Outstanding at January 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416,803 $17.75
Exercisable at January 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380,178 $18.83
The intrinsic value of stock options exercised was $3.8 million, $4.0 million and $0.5 million for 2014, 2013 and 2012,
respectively. The amount of cash received from the exercise of stock options was $3.2 million in 2014, $4.9 million in
2013 and $0.9 million in 2012. In addition, 60,624, 91,157 and 33,033 shares were tendered by employees in satisfaction
of the exercise price of stock options during 2014, 2013 and 2012, respectively.
The Company recognized $0.1 million in 2014, $0.5 million in 2013 and less than $0.1 million in 2012 of excess tax
benefits related to stock option exercises, which was reflected as an increase to additional paid-in capital.
The following table summarizes nonvested stock option activity for 2014 under the current and prior plans:
Number of Weighted-Average
Nonvested Grant Date
Options Fair Value
Nonvested at February 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,750 $ 5.08
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – –
Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46,875) 6.42
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,250) 7.60
Nonvested at January 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,625 $ 3.28
The weighted-average grant date fair value of stock options granted for 2013 and 2012 was $9.46 and $5.46,
respectively. The total grant date fair value of stock options vested during 2014, 2013 and 2012 was $0.3 million,
$0.4 million and $0.5 million, respectively. As of January 31, 2015, the total remaining unrecognized compensation
cost related to nonvested stock options amounted to less than $0.1 million, which will be amortized over the
weighted-average remaining requisite service period of 1.1 years.
Restricted Stock Units for Non-Employee Directors
Equity-based grants may be made to non-employee directors in the form of cash-equivalent restricted stock units
(“RSUs”) at no cost to the non-employee director. The RSUs are subject to a vesting requirement (usually one year),
earn dividend equivalent units, and are payable in cash on the date the director terminates service or such earlier date
as a director may elect, subject to restrictions, based on the then current fair value of the Company’s common stock.
Dividend equivalents are paid on outstanding RSUs at the same rate as dividends on the Company’s common stock, are
automatically re-invested in additional RSUs, and vest immediately as of the payment date for the dividend. Expense
related to the initial grant of RSUs is recognized ratably over the vesting period based upon the fair value of the RSUs,
as remeasured at the end of each period. Expense for the dividend equivalents is recognized at fair value immediately.
Gains and losses resulting from changes in the fair value of the RSUs subsequent to the vesting period and through
the settlement date are reported in the Company’s consolidated statements of earnings. See Note 5 and Note 13 to the
consolidated financial statements for information regarding the deferred compensation plan for non-employee directors.