DSW 2012 Annual Report Download - page 64

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Common Shares adjusted for the exchange ratio of 0.435. Immediately after the Merger, DSW paid $7.0 million related to the
settlement of these options and SARs, which was treated as a reduction of additional paid in capital, and converted the
remaining RVI options to options exercisable for DSW Class A Common Shares. DSW recorded additional stock-based
compensation expense of $0.3 million related to the cash settled options and SARs as the fair value the recipient received was
greater than the option they held. The converted options are included in the DSW Plan section above. The RVI stock-based
compensation instruments were adjusted retrospectively for the conversion ratio. Excluding the converted options, the DSW
Plan was otherwise not affected as a result of the Merger.
The RVI Plan provided for the issuance of stock options to purchase up to 13.0 million common shares (which represent 5.7
million DSW Common Shares factoring in the exchange ratio of 0.435 pursuant to the Merger) or the issuance of restricted
stock to management, key employees of RVI and affiliates, consultants (as defined in the RVI Plan), and directors of RVI.
Stock Options- Excluding any expense related to the Merger, RVI expensed $0.1 million and $0.5 million in fiscal 2011 and
2010 related to stock options.
Stock Appreciation Rights ("SARs")- RVI expensed less than $0.1 million, and $(1.0) million in fiscal 2011 and 2010,
respectively, related to RVI SARs. There were no SARs granted in fiscal 2011 or 2010.
Restricted Stock Units - RVI expensed less than $0.1 million during fiscal 2010 related to RVI restricted stock units. RVI paid
$0.1 million in fiscal 2010 to settle vested restricted stock units.
Restricted Shares- RVI expensed $0.1 million and $0.6 million during fiscal 2011 and 2010, respectively, related to RVI
restricted shares. These restricted shares were settled in the first quarter of fiscal 2011. RVI issued restricted common shares to
certain key employees pursuant to individual employment agreements and certain other grants from time to time, which were
approved by the RVI board of directors. The agreements conditioned the vesting of the RVI restricted shares generally upon
continued employment with RVI with such restrictions generally expiring over one to three years. The market value of the RVI
restricted shares at the date of grant was charged to expense on a straight-line basis over the period that the restrictions lapsed.
7. PROPERTY AND EQUIPMENT, NET
The balance sheet caption "Property and equipment, net" was comprised of the following as of the periods presented:
February 2, 2013 January 28, 2012
(in thousands)
Property and equipment:
Land $ 1,110 —
Furniture, fixtures and equipment 343,614 $ 295,162
Buildings, building and leasehold improvements 291,572 215,519
Total property and equipment 636,296 510,681
Accumulated depreciation and amortization (335,983)(274,955)
Property and equipment, net $ 300,313 $ 235,726
8. ACCRUED EXPENSES
The balance sheet caption "Accrued expenses" was comprised of the following as of the periods presented:
February 2, 2013 January 28, 2012
(in thousands)
Gift cards and merchandise credits $ 33,831 $ 28,248
Compensation 19,711 33,427
Taxes 16,192 13,128
Customer loyalty program 18,407 14,577
Other 35,058 37,618
Total accrued expenses $ 123,199 $ 126,998
Table of Contents DSW INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS