Saks Fifth Avenue 2011 Annual Report Download - page 77

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SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share amounts)
Restricted Stock
The fair value of restricted stock is based on the closing market price of the Company’s common stock on the
date of grant. A summary of restricted stock awards activity for 2011 is presented below:
January 28, 2012
Shares
Weighted
Average
Grant
Price
Outstanding at beginning of year ......................................... 5,377 $ 7.87
Granted ........................................................... 895 11.23
Vested ............................................................ (1,119) 12.02
Forfeited .......................................................... (258) 7.78
Outstanding at end of year .............................................. 4,895 $ 7.54
The Company granted restricted stock awards of 895, 1,096, and 2,351 shares to certain employees in 2011,
2010, and 2009, respectively. The weighted-average grant-date fair value of restricted stock awards granted in
2011, 2010, and 2009 was $11.23, $7.65, and $2.99, respectively. The total fair value of restricted stock that
vested in 2011, 2010, and 2009 was $13,453, $6,134, and $3,940, respectively. As of January 28, 2012, total
unrecognized compensation expense related to non-vested restricted stock awards, including an estimate for
pre-vesting forfeitures, was $11,517, which is expected to be recognized over a weighted-average period of 2.1
years.
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. For performance share awards granted during 2011, the
amount of shares that can be earned ranges from 0% to 125% of the number of performance share awards
granted. For performance share awards granted during 2010 and 2009, the amount of shares that could be
earned ranged from 0% to 100%. 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 performance share awards is determined based on the closing market
price of the Company’s common stock on the date of grant.
A summary of performance share award activity for 2011 is presented below:
January 28, 2012
Shares
Weighted
Average
Grant Price
Outstanding at beginning of year ......................................... 1,657 $ 4.08
Granted ........................................................... 306 12.31
Vested ............................................................ (66) 3.60
Forfeited .......................................................... (52) 9.41
Outstanding at end of year .............................................. 1,845 $ 5.32
F-32