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STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
F-16
based on our common stock obtaining a certain market price (115,000 shares at $18 per share and 125,000 shares at $24 per share). The
total value of share-based compensation expense for these MP Performance Shares, which expire in September 2010, was determined by
multiplying the total number of shares expected to be issued by the performance share fair value (determined using a Monte Carlo
simulation model) and was recognized over the weighted-average implicit performance period from 2006 to 2008. As of January 30, 2010,
there were no vested MP Performance Shares.
The following table summarizes non-vested stock activity for the three years ended January 30, 2010 (shares in thousands):
Restricted Stock Awards MP Performance Shares Performance Shares
Shares
Weighted-
Average
Grant Date
Fair Value Shares
Weighted-
Average
Grant Date
Fair Value Shares
Weighted-
Average
Grant Date
Fair Value
Non-vested at February 3, 2007 544 $16.82 240 $14.24
Granted 178 9.12
Vested (19) 16.36
Forfeited (123) 20.51
Non-vested at February 2, 2008 580 14.39 240 14.24
Granted 561 4.86
Vested (32) 15.65
Forfeited (151) 11.01
Non-vested at January 31, 2009 958 9.30 240 14.24
Granted 120 6.16 1,569 $1.43
Vested (52) 16.02
Forfeited (151) 10.90 (93) 1.25
Non-vested at January 30, 2010 875 $ 8.59 240 $14.24 1,476 $1.44
Total unrecognized compensation cost $3,083 None
$645
Weighted-average expected life remaining 3.5 years None
1.0 year
The total fair value of restricted stock awards vested during fiscal 2009 was $0.4 million.
Share-Based Compensation Expense
For the years ended January 30, 2010, January 31, 2009 and February 2, 2008, pre-tax share-based compensation expense was recorded
as follows:
2009 2008 2007
Cost of merchandise sold $2,951 $2,591 $3,777
Selling, general and administrative expenses 1,659 1,486 2,139
Total share-based compensation expense $4,610 $4,077 $5,916
Included in 2007 share-based compensation expense is $0.4 million for dividends paid on restricted stock awards that are not expected to
vest. As required by the guidance in ASC Topic 718, such payments are recorded as share-based compensation expense instead of
dividends paid.
9. Store Closing Charges
We close under-performing stores in the normal course of business. We closed 11 stores in 2009, 10 stores during 2008 and two stores
during 2007 incurring pre-tax lease termination and severance costs. Lease termination costs are net of estimated sublease income that
could reasonably be obtained for the properties. In the event we are not successful in subleasing closed store locations when management
expects, additional reserves for store closing costs may be recorded. During 2009, 2008 and 2007, we recorded net pre-tax charges of
$2.7 million, $4.7 million and $1.1 million, respectively, for store closing charges, including adjustments to previously recorded store closing
reserves for changes in estimated sublease income. Store closing charges are included in SG&A expenses in the Consolidated
Statements of Operations.