Saks Fifth Avenue 2008 Annual Report Download - page 90

SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
A summary of performance share awards for the year ended January 31, 2009 is presented below:
Shares
Weighted
Average
Grant
Price
Nonvested at February 2, 2008 ................................................... 679 $19.73
Granted ..................................................................... 816 13.04
Vested ...................................................................... (142) 18.56
Canceled .................................................................... (30) 13.75
Nonvested at January 31, 2009 ................................................... 1,323 $15.87
At January 31, 2009 and February 2, 2008, the Company had unearned compensation amounts related to
non-vested restricted stock and performance shares of $29,986 and $15,562, respectively, which will be
recognized over a weighted average period of approximately 2.5 years.
STOCK PURCHASE PLAN
The Company’s employee stock purchase plan provides for an aggregate of 1,450 shares of the Company’s
common stock to be purchased by eligible employees through payroll deductions at a 15% discount to market
value. Under the plan, 250, 37, and 40 shares of the Company’s common stock were purchased by employees in
2008, 2007, and 2006, respectively. During 2008, 2007, and 2006, compensation cost, net of related tax effects,
of $189, $60, and $61, respectively, was recognized in connection with the shares issued. At January 31, 2009,
the plan had 148 shares available for future offerings.
On December 3, 2008, the Human Resources and the Compensation Committee of the Board of Directors
suspended the employee stock purchase plan for the 2009 calendar year.
NOTE 11 — FAIR VALUE MEASUREMENTS
Effective February 3, 2008, the Company partially adopted SFAS No. 157. The partial adoption is in
accordance with FSP No. FAS 157-2, which allows for the delay of the effective date of SFAS No. 157 for
nonfinancial assets and nonfinancial liabilities that are not measured at fair value on a regular basis.
SFAS No. 157 discusses valuation techniques, such as the market approach (comparable market prices), the
income approach (present value of future income or cash flow), and the cost approach (cost to replace the service
capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value into three broad levels. The following is a brief description of
these three levels:
Level 1: Quoted market prices in active markets for identical assets or liabilities
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data
Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions
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