Saks Fifth Avenue 2010 Annual Report Download - page 80

SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
As of January 29, 2011, the following Pension Plan and SERP benefit payments are expected to be paid:
Year
Benefit
Payments
2011 ............................................................ $ 17,607
2012 ............................................................ 16,597
2013 ............................................................ 16,565
2014 ............................................................ 16,423
2015 ............................................................ 15,804
2016 - 2020 ....................................................... 49,909
$132,905
NOTE 9—SHAREHOLDERS’ EQUITY
The Company has a share repurchase program that authorizes it to purchase shares of the Company’s
common stock. There were no shares repurchased during 2010 and 2009. During 2008, the Company repurchased
2,949 shares for an aggregate amount of $34,899. There were 32,709 shares available for repurchase under the
share repurchase program as of January 29, 2011.
On July 30, 2009, the Company filed a shelf registration statement with the SEC permitting the Company to
issue securities, in one or more offerings, with a maximum aggregate offering price of $400,000. The shelf
registration statement covers a variety of securities including common stock, preferred stock, warrants, and debt
securities.
Under the shelf registration statement, the Company completed a public offering of approximately 14,925
shares of its common stock on October 6, 2009, at an offering price of $6.70 per share for $95,095 in proceeds,
net of issuance costs. The net proceeds were used to reduce borrowings under the Company’s revolving credit
facility and for general corporate purposes.
In November 2010, the Company contributed 1,755 shares of the Company’s common stock to the
Company’s Pension Plan, in consideration for a credit against future funding obligations, which is considered a
non-cash financing activity. The shares were valued for purposes of the contribution at $19,961 (See Note 8). As
required by the investment policy of the Pension Plan, the shares were sold by the Pension Plan in an orderly
manner as soon as practicable after the contribution was made. The Company filed with the SEC prospectus
supplements to the Company’s existing effective shelf registration statement covering the resale of the shares by
the Pension Plan.
NOTE 10—STOCK-BASED COMPENSATION
The Company maintains an equity incentive plan, which allows for the granting of stock options, stock
appreciation rights, restricted stock, performance share awards and other forms of equity awards to employees,
directors, and officers. As of January 29, 2011, there were 3,731 shares available for future grants under the
equity incentive plan. Stock options granted generally vest over a four-year period from the grant date and have a
contractual term of seven to ten years from the grant date. Restricted stock and performance share awards
generally vest over periods ranging from three to five years from the grant date, although the equity incentive
plan permits accelerated vesting in certain circumstances at the discretion of the HRCC of the Board of Directors.
The Company does not use cash to settle any of its stock-based awards and issues new shares of common stock
upon the exercise of stock options and the granting of restricted stock and performance shares.
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