DSW 2010 Annual Report Download - page 59

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As of January 29, 2011: Shares WAEP
Weighted
Average
Remaining
Contract Life
Aggregate
Intrinsic
Value
Options exercisable ........................... 1,029 $22.25 6 years $13,043
Options expected to vest ....................... 1,432 $18.61 8 years $21,931
Options vested and expected to vest . .............. 2,461 $20.14 7 years $34,974
The aggregate intrinsic value is calculated as the amount by which the fair value of the underlying common
shares exceeds the option exercise price. The total intrinsic value of options exercised during fiscal 2010 and 2009
was $4.6 million and $0.4 million, respectively. This amount was immaterial in fiscal 2008. The total fair value of
options that vested during fiscal 2010, 2009 and 2008 was $4.2 million, $4.3 million and $3.6 million, respectively.
Restricted Stock Units — Restricted stock units generally cliff vest at the end of four years from the date of
grant and are settled immediately upon vesting. Compensation cost is measured at fair value on the grant date and
recorded over the vesting period. Fair value is determined by multiplying the number of units granted by the grant
date market price. DSW expensed $0.3 million, $1.3 million and $0.7 million, respectively, in fiscal 2010, 2009 and
2008 related to restricted stock units. The weighted average exercise price for all restricted stock units is zero. The
aggregate intrinsic value is calculated as the amount by which the fair value of the underlying common shares
exceeds the exercise price. The total intrinsic value of restricted stock units that vested during fiscal 2010, 2009 and
2008 was $1.0 million, $0.8 million and $0.1 million, respectively. The total fair value of restricted stock units that
vested during fiscal 2010, 2009 and 2008 was $0.6 million, $1.7 million and $0.2 million, respectively. As of
January 29, 2011, the total compensation cost related to nonvested restricted stock units not yet recognized was
approximately $1.6 million with a weighted average expense recognition period remaining of 2.4 years.
The following tables summarize DSW’s restricted stock units and weighted average grant date fair value
(“GDFV”) for the periods presented and aggregate intrinsic value (units and intrinsic value in thousands):
Units GDFV Units GDFV Units GDFV
January 29, 2011 January 30, 2010 January 31, 2009
Fiscal Years Ended
Outstanding beginning of year ............. 267 $12.61 226 $17.51 151 $23.92
Granted ............................. 59 $26.56 180 $10.39 158 $12.61
Vested .............................. (39) $16.17 (75) $19.77 (8) $26.61
Forfeited............................. (11) $14.80 (64) $15.30 (75) $19.08
Outstanding end of year ................. 276 $14.97 267 $12.61 226 $17.51
As of January 29, 2011: Units GDFV
Weighted
Average
Remaining
Contract Life
Aggregate
Intrinsic
Value
Restricted stock units expected to vest .............. 212 $14.97 2 years $7,063
Director Stock Units — DSW issues stock units to directors who are not employees of DSW or RVI. During
fiscal 2010, 2009 and 2008, DSW granted 31,562, 46,504 and 45,265 director stock units, respectively, and
expensed $0.9 million, $0.6 million and $0.6 million, respectively, related to these grants. Stock units are
automatically granted to each director who is not an employee of DSW or RVI on the date of each annual meeting
of shareholders for the purpose of electing directors. The number of stock units granted to each non-employee
director is calculated by dividing one-half of the director’s annual retainer (including committee retainer fees but
excluding any amount paid for service as the chair of a board committee) by the fair market value of a share of the
DSW Class A Common Shares on the date of the annual meeting. In addition, each director eligible to receive
compensation for board service may elect to have the cash portion of such directors’ compensation paid in the form
F-13
DSW INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)