Dollar Tree 2011 Annual Report Download - page 47

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issued. e options are fully vested when issued and have
a term of 10 years.
Under the Omnibus Plan, the Company may grant up
to 2.0 million shares of its Common Stock, plus any shares
available for future awards under the EIP, EOEP, or NEDP
plans, to the Company’s employees, including executive
officers and independent contractors. e Omnibus Plan
permits the Company to grant equity awards in the form of
incentive stock options, nonqualified stock options, stock
appreciation rights, restricted stock awards, restricted
stock units, performance bonuses, performance units,
non-employee director stock options and other equity-
related awards. ese awards generally vest over a three-
year period with a maximum term of 10 years.
Restricted Stock
e Company granted 0.4 million, 0.6 million and 0.6
million service-based RSUs, net of forfeitures in 2011,
2010 and 2009, respectively, from the EIP and the EOEP
to the Company’s employees and officers. e 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. e fair value
was determined using the Company’s closing stock price
on the date of grant. e Company recognized $19.2
million, $17.3 million and $12.8 million of expense
related to these RSUs during 2011, 2010 and 2009,
respectively. As of January 28, 2012, there was approxi-
mately $23.0 million of total unrecognized compensation
expense related to these RSUs which is expected to be
recognized over a weighted-average period of 21 months.
In 2011, the Company granted 0.1 million RSUs
from the EIP and the EOEP to certain officers of the
Company, contingent on the Company meeting certain
performance targets in 2011 and future service of these
officers through March 2014. e Company met these
performance targets in fiscal 2011; therefore, the fair value
of these RSUs of $7.3 million is being expensed over the
service period or a shorter period based on the retirement
eligibility of the grantee. e Company recognized
$5.4 million of expense related to these RSUs in 2011.
e fair value of these RSUs was determined using the
Company’s closing stock price on the grant date.
In 2010, the Company granted 0.2 million RSUs
from the EIP and the EOEP to certain officers of the
Company, contingent on the Company meeting certain
performance targets in 2010 and future service of these
officers through March 2013. e Company met these
performance targets in fiscal 2010; therefore, the fair
value of these RSUs of $7.8 million is being expensed
over the service period or a shorter period based on
the retirement eligibility of the grantee. e Company
recognized $1.8 million and $4.8 million of expense
related to these RSUs in 2011 and 2010, respectively.
e 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 officers of the
Company, contingent on the Company meeting certain
performance targets in 2009 and future service of these
officers through March 2012. e Company met these
performance targets in fiscal 2009; therefore, the fair value
of these RSUs of $6.4 million is being expensed over the
service period or a shorter period based on the retirement
eligibility of the grantee. e Company recognized $1.0
million, $2.6 million and $2.7 million of expense related
to these RSUs in 2011, 2010 and 2009, respectively.
e fair value of these RSUs was determined using the
Company’s closing stock price on the grant date.
In 2011, the Company granted RSUs with a target
value of $0.7 million from the Omnibus Plan to certain
officers of the Company. Each officer has the opportunity
to earn an amount between zero percent (0%) and two
hundred percent (200%) of the individual target award
contingent on the Company meeting certain performance
targets for the period beginning on January 30, 2011
and ending on February 1, 2014. Providing the vesting
conditions are satisfied, the awards will vest at the end
of the performance period. e Company recognized
$0.4 million of expense related on these RSUs in 2011.
e fair value of these RSUs was determined using the
Company’s closing stock price on the grant date.
e following table summarizes the status of
RSUs as of January 28, 2012, and changes during the
year then ended:
Shares
Weighted
Average
Grant
Date Fair
Value
Nonvested at January 29, 2011 1,444,761 $ 33.88
Granted 534,030 56.99
Vested (675,9 8 0) 3 0 .94
Forfeited (47,086) 42.82
Nonvested at January 28, 2012 1,255,725 $ 44.97
In connection with the vesting of RSUs in 2011, 2010
and 2009, certain employees elected to receive shares net
of minimum statutory tax withholding amounts which
totaled $13.2 million, $11.1 million and $4.8 million,
respectively. e total fair value of the restricted shares
vested during the years ended January 28, 2012, January
29, 2011 and January 30, 2010 was $20.9 million, $19.1
million and $9.6 million, respectively.
2011 Annual Report 45