Hibbett Sports 2010 Annual Report Download - page 44

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subject area. In accordance with the ASC, references to previously issued accounting standards have been replaced
by ASC references. Subsequent revisions to U.S. GAAP will be incorporated into the ASC through Accounting
Standards Updates (ASU).
In June 2009, the FASB issued ASC Topic 810, Consolidation, which amends the consolidation guidance
applicable to variable interest entities. This guidance is effective for annual periods beginning after November 15,
2009, or our Fiscal 2011. The adoption of ASC Topic 810 is not expected to have a material effect on our
consolidated financial statements.
NOTE 3. STOCK-BASED COMPENSATION
At January 30, 2010, we had four stock-based compensation plans:
(a) The Amended 2005 Equity Incentive Plan (Incentive Plan) provides that the Board of Directors may grant
equity awards to certain employees of the Company at its discretion. The Incentive Plan was adopted
effective July 1, 2005 and authorizes grants of equity awards of up to 1,233,159 authorized but unissued
shares of common stock. At January 30, 2010, there were 529,430 shares available for grant under the
Incentive Plan.
(b) The Amended 2005 Employee Stock Purchase Plan (ESPP) allows for qualified employees to participate in
the purchase of up to 204,794 shares of our common stock at a price equal to 85% of the lower of the
closing price at the beginning or end of each quarterly stock purchase period. The ESPP was adopted
effective July 1, 2005. At January 30, 2010, there were 115,114 shares available for purchase under the
ESPP.
(c) The Amended 2005 Director Deferred Compensation Plan (Deferred Plan) allows non-employee directors
an election to defer all or a portion of their fees into stock units or stock options. The Deferred Plan was
adopted effective July 1, 2005 and authorizes grants of stock up to 112,500 authorized but unissued shares
of common stock. At January 30, 2010, there were 74,169 shares available for grant under the Deferred
Plan.
(d) The Amended 2006 Non-Employee Director Equity Plan (DEP) provides for grants of equity awards to non-
employee directors. The DEP was adopted effective June 1, 2006 and authorizes grants of equity awards of
up to 672,975 authorized but unissued shares of common stock. At January 30, 2010, there were 580,989
shares available for grant under the DEP.
Our plans allow for a variety of equity awards including stock options, restricted stock awards, stock
appreciation rights and performance awards. As of January 30, 2010, we had only granted awards in the form of
stock options, restricted stock units (RSUs) and performance-based awards (PSAs). RSUs and options to purchase
our common stock have been granted to officers, directors and key employees. Beginning with the adoption of the
Incentive Plan, a greater proportion of the awards granted to employees, including executive employees, have been
RSUs as opposed to stock options when compared to grants made in prior years. The annual grant made for Fiscal
2010, Fiscal 2009 and Fiscal 2008 to employees consisted solely of RSUs. We have also awarded PSAs to our
Named Executive Officers (NEOs) and expect the Compensation Committee of the Board will continue to grant
PSAs to our NEOs in the future. The terms and vesting schedules for stock-based awards vary by type of grant and
generally vest upon time-based conditions. Upon exercise, stock-based compensation awards are settled with
authorized but unissued company stock. On March 17, 2009, the Compensation Committee of the Board awarded a
grant of 46,800 non-qualified stock options to our Chief Executive Officer that vest equally over four years and have
an eight-year life.
The compensation cost that has been charged against income for these plans was as follows for the fiscal
years ended January 30, 2010, January 31, 2009 and February 2, 2008 (in thousands):
January 30, January 31, February 2,
2010 2009 2008
Stock-based compensation expense by type:
Stock options 1,799$ 1,968$ 2,068$
Restricted stock awards 2,278 1,482 1,479
Employee stock purchase 80 96 97
Director deferred compensation - 10 33
Total stock-based compensation expense 4,157 3,556 3,677
Income tax benefit recognized 1,277 941 894
Stock-based compensation expense, net of income tax 2,880$ 2,615$ 2,783$
Fiscal Year Ended