Saks Fifth Avenue 2009 Annual Report Download - page 92

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Table of Contents
SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
years. Compensation costs for the performance shares that cliff vest is expensed on a straight line basis over the requisite service period. Performance shares with
graded vesting features are treated as multiple awards based upon the vesting date. The Company records compensation costs for these awards on a straight line
basis over the requisite service period for each separately vesting portion of the award.
The Company granted performance shares of 1,112, 816, and 570 to certain employees in 2009, 2008, and 2007, respectively. The fair value of these
shares on the dates of grants was $2,624, $10,632, and $11,282 for 2009, 2008, and 2007, respectively. During 2009, 2008, and 2007, compensation costs
recognized for performance shares earned in current and prior years, net of related tax effects, was $2,242, $1,735, and $1,605, respectively.
A summary of performance share awards for the year ended January 30, 2010 is presented below:
Shares
Weighted
Average
Grant
Price
Nonvested at January 31, 2009 1,323 $ 15.87
Granted 1,112 2.36
Vested (7) 19.86
Canceled (779) 13.12
Nonvested at January 30, 2010 1,649 $ 7.66
At January 30, 2010 and January 31, 2009, the Company had unearned compensation amounts related to non-vested restricted stock and performance
shares of $13,959 and $29,986, respectively, which will be recognized over a weighted average period of approximately 2.1 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, 0, 250, and 37 shares of the Company’s common stock were purchased
by employees in 2009, 2008, and 2007, respectively. During 2009, 2008, and 2007, compensation costs, net of related tax effects, of $0, $189, and $60,
respectively, was recognized in connection with the shares issued. At January 30, 2010, the plan had 148 shares available for future offerings.
On December 3, 2008, the HRCC of the Board of Directors suspended the employee stock purchase plan for the 2009 calendar year. On December 8,
2009, the HRCC of the Board of Directors suspended the employee stock purchase plan indefinitely.
NOTE 11 — STORE DISPOSITIONS, INTEGRATION AND OTHER CHARGES
During the fourth quarter of 2008, the Company discontinued the operations of its CLL specialty store business which consisted of 98 leased, mall-based
stores. Along with the previous disposition of the SDSG businesses, CLL was no longer determined to be a strategic fit for the Company. CLL generated
revenues of
F-36
Source: SAKS INC, 10-K, March 18, 2010 Powered by Morningstar® Document Research℠