Saks Fifth Avenue 2010 Annual Report Download - page 83

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SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
A summary of restricted stock awards for the year ended January 29, 2011 is presented below:
2010
Shares
Weighted
Average
Grant
Price
Outstanding at beginning of year ............................... 4,792 $ 8.68
Granted ............................................... 1,096 7.65
Vested ................................................ (313) 19.62
Forfeited .............................................. (198) 7.65
Outstanding at end of year .................................... 5,377 $ 7.87
The Company granted restricted stock awards of 1,096, 2,351, and 2,184 shares to certain employees in
2010, 2009, and 2008, respectively. The weighted-average grant-date fair value of restricted stock awards
granted in 2010, 2009, and 2008 was $7.65, $2.99, and $12.79, respectively. The total fair value of restricted
stock that vested in 2010, 2009, and 2008 was $6,134, $3,940, and $2,059.
PERFORMANCE SHARES
Under the equity incentive plan, the Company may grant performance share awards that vest based on the
outcome of certain performance criteria that are established and approved by the HRCC of the Board of
Directors. The actual number of performance shares earned is based on the level of performance achieved over
the performance period, typically one year from the grant date, relative to established financial and operating
goals, none of which are considered market conditions. The amount of shares that can be earned ranges from 0%
to 100% of the number of performance share awards granted. In addition to the performance criteria,
performance shares do not vest unless employees remain employed by the Company during the requisite service
period, which is typically three years from the grant date. The fair value of the performance share awards is
based on the market value of the Company’s common stock on the date of grant. Compensation expense for the
performance shares that cliff vest is expensed on a straight-line basis over the requisite service period. As of
January 29, 2011, total unrecognized compensation expense related to non-vested performance share awards,
including an estimate for pre-vesting forfeitures, was $3,199, which is expected to be recognized over a
weighted-average period of 2.0 years.
A summary of performance share awards for the year ended January 29, 2011 is presented below:
2010
Shares
Weighted
Average
Grant
Price
Outstanding at beginning of year ............................... 1,649 $ 7.66
Granted ............................................... 503 7.20
Vested ................................................ (462) 19.87
Forfeited .............................................. (33) 8.86
Outstanding at end of year .................................... 1,657 $ 4.08
The Company granted performance share awards of 503, 1,112, and 816 to certain employees in 2010, 2009,
and 2008, respectively. The weighted-average grant-date fair value of performance share awards granted in 2010,
2009, and 2008 was $7.20, $2.36, and $13.04, respectively. The total fair value of performance share awards that
vested in 2010, 2009, and 2008 was $9,186, $134, and $2,631, respectively.
F-33