Stein Mart 2015 Annual Report Download - page 41

STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
F-17
We provide an executive split-dollar life insurance benefit which provides officers, key executives and director-level employees with pre-
retirement life insurance benefits based upon three to five times the current annual compensation. The discount rate used to determine
the benefit obligation was 4.15% and 3.45% as of January 30, 2016 and January 31, 2015, respectively.
The post-retirement benefit obligations included in other liabilities in the Consolidated Balance Sheets were $1.7 million and $1.8 million for
2015 and 2014, respectively.
The net periodic post-retirement benefit costs for 2015, 2014 and 2013 were insignificant.
Amounts included in accumulated other comprehensive income (loss) consisted of:
January 30, January 31, February 1,
2016 2015 2014
Total net actuarial gain (loss) 68$ (118)$ (79)$
In connection with the executive deferral and executive split-dollar life insurance plans, whole life insurance contracts were purchased on
the related participants. At January 30, 2016 and January 31, 2015, the cash surrender value of these policies was $18.5 million and is
included in other assets in the Consolidated Balance Sheets.
We have a noncontributory executive retiree medical plan wherein eligible retired executives may continue their pre-retirement medical,
dental and vision benefits through age 65. The postretirement benefit liability was $0.8 million at January 30, 2016 and $0.7 million at
January 31, 2015. Accumulated other comprehensive loss on the Consolidated Balance Sheets includes income of $0.1 million and loss
of $0.2 million for this plan at January 30, 2016 and January 31, 2015, respectively. The expense recorded in net income for 2015, 2014
and 2013 was insignificant.
8. Shareholders’ Equity
Dividend
In 2015, we paid a special cash dividend of $5.00 per common share on February 27, 2015 and four quarterly dividends of $0.075 per
common share on April 17, 2015, July 17, 2015, October 16, 2015, and January 15, 2016. In 2014, we paid a quarterly dividend of $0.05
per common share on April 18, 2014 and a quarterly dividend of $0.075 per common share on July 18, 2014, October 17, 2014 and
January 16, 2015. In 2013, we paid a quarterly dividend of $0.05 per common share on July 19, 2013, October 18, 2013 and January 17,
2014.
Stock Repurchase Plan
During 2015, 2014 and 2013, we repurchased 262,219 shares, 320,081 shares and 87,742 shares of our common stock in the open
market at a total cost of $3.6 million, $4.1 million and $1.1 million, respectively. Stock repurchases on the open market, under a Board of
Directors authorized plan, for taxes due on the vesting of employee stock awards during 2015, 2014 and 2013 included 262,219 shares,
216,729 shares and 87,742 shares, respectively. As of January 30, 2016, there are 720,874 shares which can be repurchased pursuant to
the Board of Directors’ current authorization.
Employee Stock Purchase Plan
We have an Employee Stock Purchase Plan (the “Stock Purchase Plan”) whereby all employees who complete six months of employment
and who work on a full-time basis or are regularly scheduled to work more than 20 hours per week are eligible to participate in the Stock
Purchase Plan. Participants in the Stock Purchase Plan may purchase shares of the Company’s common stock at 85% of the lower of the
fair market value of the Company’s stock determined at either the beginning or the end of each semi-annual option period. Shares eligible
under the Stock Purchase Plan, which is effective for the years 1997 through 2016, are limited to 2.9 million shares in the aggregate, with
no more than 200,000 shares being made available in each calendar year, excluding carryover from previous years. In 2015, 2014 and
2013, the participants acquired 111,806 shares, 64,839 shares and 82,705 shares of common stock at weighted-average per share prices
of $6.87, $11.72 and $8.38, respectively. The fair value of Stock Purchase Plan shares was estimated using the Black-Scholes call option
value method with the following weighted-average assumptions for 2015: expected volatility of 30.8%, expected dividend yield of 2.5%, a
risk-free interest rate of 0.1%, a present-value discount factor of 1.0% and an expected term of six months. Share-based compensation
expense for the Stock Purchase Plan was $0.3 million, $0.2 million and $0.2 million in 2015, 2014 and 2013, respectively. We had
389,150 shares authorized and available for grant under the Stock Purchase Plan at January 30, 2016.