Pottery Barn 2013 Annual Report Download - page 67

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Restricted Stock Units
The following table summarizes our restricted stock unit activity during fiscal 2013:
Shares
Weighted
Average
Grant Date
Fair Value
Weighted Average
Contractual Term
Remaining (Years)
Intrinsic
Value1
Balance at February 3, 2013 2,772,426 $34.61
Granted 959,160 53.59
Released (460,700) 34.57
Cancelled (191,235) 41.28
Balance at February 2, 2014 3,079,651 $40.11 1.93 $167,903,000
Vested plus expected to vest at February 2, 2014 2,105,508 $39.99 1.90 $114,792,000
1Intrinsic value for outstanding and unvested restricted stock units is based on the market value of our common stock on the
last business day of the fiscal year (or $54.52).
The following table summarizes additional information about restricted stock units:
Fiscal 2013 Fiscal 2012 Fiscal 2011
Weighted average grant date fair value per share of awards granted $ 53.59 $ 37.94 $ 39.27
Intrinsic value of awards released 1$24,568,000 $16,730,000 $12,865,000
1Intrinsic value for releases is based on the market value on the date of release.
Tax Effect
We present tax benefits resulting from the exercise of stock-based awards as operating cash flows in our
Consolidated Statements of Cash Flows. Tax deductions in excess of the cumulative compensation cost
recognized for stock-based awards exercised are presented as a financing cash inflow and an operating cash
outflow. During fiscal 2013, fiscal 2012 and fiscal 2011, net proceeds from the exercise of stock-based awards
was $6,614,000, $14,637,000 and $9,614,000, respectively, and the current tax benefit associated with such
exercises totaled $17,940,000, $21,477,000 and $15,078,000, respectively.
Note I: Williams-Sonoma, Inc. 401(k) Plan and Other Employee Benefits
We have a defined contribution retirement plan, the Williams-Sonoma, Inc. 401(k) Plan (the “401(k) Plan”),
which is intended to be qualified under Internal Revenue Code Sections 401(a), 401(k), 401(m) and 4975(e)(7).
The 401(k) Plan permits eligible employees to make salary deferral contributions up to 75% of their eligible
compensation each pay period (7% for highly-compensated employees). Employees designate the funds in which
their contributions are invested. Each participant may choose to have his or her salary deferral contributions and
earnings thereon invested in one or more investment funds, including our company stock fund.
Our matching contribution is equal to 50% of each participant’s salary deferral contribution, taking into account
only those contributions that do not exceed 6% of the participant’s eligible pay for the pay period. Each
participant’s matching contribution is earned on a semi-annual basis with respect to eligible salary deferrals for
those employees that are employed with the company on June 30th or December 31st of the year in which the
deferrals are made. Each associate must complete one year of service prior to receiving company matching
contributions. For the first five years of the participant’s employment, all matching contributions vest at the rate
of 20% per year of service, measuring service from the participant’s hire date. Thereafter, all matching
contributions vest immediately.
The 401(k) Plan consists of two parts: a profit sharing plan portion and a stock bonus plan/employee stock
ownership plan (the “ESOP”). The ESOP portion is the portion that is invested in the Williams-Sonoma, Inc.
53
Form 10-K