Dollar Tree 2010 Annual Report Download - page 47

Notes to Consolidated Financial Statements
Restricted Stock
The Company granted 0.6 million, 0.6 million and
0.5 million service-based RSUs, net of forfeitures in
2010, 2009 and 2008, respectively, from the EIP and the
EOEP to the Company’s employees and offi cers. The fair
value of all of these RSUs is being expensed ratably over
the three-year vesting periods, or a shorter period based
on the retirement eligibility of the grantee. The fair
value was determined using the Company’s closing stock
price on the date of grant. The Company recognized
$17.3 million, $12.8 million and $9.5 million of expense
related to these RSUs during 2010, 2009 and 2008. As of
January 29, 2011, there was approximately $23.1 million
of total unrecognized compensation expense related to
these RSUs which is expected to be recognized over a
weighted-average period of 22 months.
In 2010, the Company granted 0.2 million RSUs
from the EIP and the EOEP to certain offi cers of the
Company, contingent on the Company meeting certain
performance targets in 2010 and future service of these
offi cers through fi scal 2011. The Company met these
performance targets in fi scal 2010; therefore, the fair
value of these RSUs of $7.8 million is being expensed
over the service period. The Company recognized
$4.8 million of expense on these RSUs in 2010. The
fair value of these RSUs was determined using the
Company’s closing stock price on the grant date.
In 2009, the Company granted 0.2 million RSUs
from the EIP and the EOEP to certain offi cers of
the Company, contingent on the Company meeting
certain performance targets in 2009 and future service
of these offi cers through fi scal 2010. The Company
met these performance targets in fi scal 2009; therefore,
the fair value of these RSUs of $6.4 million is being
expensed over the service period. The Company
recognized $2.6 million and $2.7 million of expense
on these RSUs in 2010 and 2009. The fair value of
these RSUs was determined using the Company’s
closing stock price on the grant date.
In 2008, the Company granted 0.1 million RSUs
from the EIP and the EOEP to certain offi cers of
the Company, contingent on the Company meeting
certain performance targets in 2008 and future service
of these offi cers through fi scal 2009. The Company
met these performance targets in fi scal 2008; therefore,
the fair value of these RSUs of $2.3 million was
expensed over the service period. The Company
recognized $1.1 million and $1.2 million of expense
on these RSUs in 2009 and 2008, respectively. The
fair value of these RSUs was determined using the
Company’s closing stock price on the grant date.
The following table summarizes the status of
RSUs as of January 29, 2011, and changes during the
year then ended:
Shares
Weighted
Average
Grant
Date Fair
Value
Nonvested at January 30, 2010 1,445,172 $ 24.86
Granted 827,925 40.07
Vested (792,489) 24.07
Forfeited (35,847) 31.05
Nonvested at January 29, 2011 1,444,761 $ 33.88
In connection with the vesting of RSUs in 2010,
2009 and 2008, certain employees elected to receive
shares net of minimum statutory tax withholding
amounts which totaled $11.1 million, $4.8 million
and $2.6 million, respectively. The total fair value of
the restricted shares vested during the years ended
January 29, 2011, January 30, 2010 and January 31,
2009 was $19.1 million, $9.6 million and $8.0 million,
respectively.
Stock Options
In 2010 and 2009, the Company granted less than
0.1 million service-based stock options from the
EIP, EOP and the NEDP, respectively. In 2008, the
Company granted a total of 0.8 million service-based
stock options from these plans. The fair value of all
of these options is being expensed ratably over the
three-year vesting periods, or a shorter period based
on the retirement eligibility of the grantee. All options
granted to directors vest immediately and are expensed
on the grant date. During 2010, 2009 and 2008, the
Company recognized $2.3 million, $3.7 million and
$4.7 million, respectively of expense related to service-
based stock option grants. As of January 29, 2011, there
was approximately $1.3 million of total unrecognized
compensation expense related to these stock options
which is expected to be recognized over a weighted
average period of fi ve months.
In 2008, the Company granted 0.1 million stock
options from the EIP and the EOEP to certain offi cers
of the Company, contingent on the Company meeting
certain performance targets in 2008 and future service
of these offi cers through fi scal 2009. The Company
met these performance targets in fi scal 2008; therefore,
the fair value of these stock options of $1.0 million
was expensed over the service period. The Company
DOLLAR TREE, INC. ♦ 2010 Annual Report 45