Saks Fifth Avenue 2011 Annual Report Download - page 78

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SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share amounts)
The Company granted performance share awards of 306, 503, and 1,112 to certain employees in 2011, 2010,
and 2009, respectively. The weighted-average grant-date fair value of performance share awards granted in
2011, 2010, and 2009 was $12.31, $7.20, and $2.36, respectively. The total fair value of performance share
awards that vested in 2011, 2010, and 2009 was $239, $9,186, and $134, respectively. As of January 28, 2012,
total unrecognized compensation expense related to non-vested performance share awards, including an
estimate for pre-vesting forfeitures, was $3,989, which is expected to be recognized over a weighted-average
period of 1.9 years.
Employee Stock Purchase Plan
The Employee Stock Purchase Plan (“ESPP”) allows for shares of the Company’s common stock to be purchased
by eligible employees through payroll deductions at a 15% discount to market value. In 2009, the HRCC of the
Board of Directors suspended the employee stock purchase plan indefinitely.
NOTE 11: CLUB LIBBY LU CLOSURE
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 Saks Department
Store Group businesses, CLL was no longer determined to be a strategic fit for the Company. As of January 28,
2012, there were no amounts payable remaining for the CLL store closings.
NOTE 12: QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Summarized quarterly financial information for 2011 and 2010 is as follows:
2011
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Net sales ............................... $ 725,998 $ 670,180 $ 692,311 $ 925,104
Gross margin ........................... 319,934 254,545 305,813 347,882
Operating income (loss) ................... 60,433 (3,837) 39,749 51,999
Net income (loss) ........................ 28,409 (8,369) 17,771 36,979
Basic earnings (loss) per common share ...... $ 0.18 $ (0.05) $ 0.12 $ 0.24
Diluted earnings (loss) per common share .... $ 0.16 $ (0.05) $ 0.11 $ 0.21
2010
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Net sales ............................... $ 667,438 $ 593,145 $ 658,831 $ 866,331
Gross margin ........................... 287,731 221,271 280,655 327,601
Operating income (loss) ................... 45,454 (44,381) 31,634 57,391
Income (loss) from continuing operations .... 18,785 (32,234) 36,316 24,529
Net income (loss) ........................ 18,785 (32,234) 36,316 24,979
Basic earnings (loss) per common share ...... $ 0.12 $ (0.21) $ 0.24 $ 0.16
Diluted earnings (loss) per common share .... $ 0.11 $ (0.21) $ 0.20 $ 0.14
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