Rue 21 2012 Annual Report Download - page 56

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rue21, inc.
Notes to Consolidated Financial Statements — Continued
(3) Represents the period of time options are expected to be outstanding. The weighted-average expected option
term was determined using the “simplified method”, as allowed by Staff Accounting Bulletin Topic 14. The
expected term used to value a share option grant under the simplified method is the midpoint between the
vesting date and the contractual term of the share option.
The following table summarizes information regarding non-vested outstanding stock options as of February 2, 2013:
Shares
Weighted
Averaged Fair Value
at Grant Date
(in thousands) (per share)
Non-vested as of January 29, 2012 ........................... 810 $14.20
Granted ................................................. 125 13.67
Vested .................................................. (325) 12.76
Cancelled ............................................... (10) 11.78
Non-vested as of February 2, 2013 ........................... 600 $14.91
As of February 2, 2013, there was $8.9 million of unrecognized compensation expense related to non-vested
stock option awards that is expected to be recognized over a weighted-average period of 0.80 years. The total fair
value of shares vested during the fiscal years 2012, 2011, and 2010, was $4.1 million, $2.7 million and $0.8 million,
respectively.
Restricted Stock Unit Activity
Time-based restricted stock units vest over three years.
Performance-based restricted stock unit awards vest over three years if the performance is achieved in the first
year period. The level of goal achievement, if any, will determine the number of shares that can be received.
Below is a summary of restricted stock unit activity for the year ended February 2, 2013:
Restricted Stock Unit Grants
Time-Based Restricted Stock Units
For the Year Ended February 2,
2013
Performance Share Units For the
Year Ended February 2, 2013
Shares
Weighted Averaged
Fair Value at Grant
Date Shares
Weighted Averaged
Fair Value at Grant
Date
(in thousands) (per share) (in thousands) (per share)
Non-vested as of January 28, 2012 . . . 162 $29.85 — $ —
Granted ........................ 182 $27.20 155 $27.24
Vested ......................... (63) $29.84 — $ —
Expired or forfeited .............. (1) $30.12 — $ —
Non-vested as of February 2, 2013 . . . 280 $28.12 155 $27.24
The total fair value of time-based restricted stock units granted during fiscal year 2012 was $5.0 million. As of
February 2, 2013, there was $7.9 million of total unrecognized compensation cost related to non-vested restricted
stock units. The unrecognized cost is expected to be recognized over a weighted-average period of 1.0 years.
The total fair value of performance share units during fiscal year 2012 was $4.2 million. As of February 2,
2013, there was $1.6 million of total unrecognized compensation cost related to non-vested performance share units.
The unrecognized cost is expected to be recognized over a weighted average period of 1.29 years.
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