Dollar Tree 2012 Annual Report Download - page 47

Notes to Consolidated Financial Statements
receivedawardsundertheEIP.eEOEPallowedthe
Company to grant the same type of equity awards as the
EIP.eseawardsgenerallyvestoverathree-yearperiod,
withamaximumtermof10years.isplanwastermi-
natedonJune16,2011andreplacedwiththeCompany’s
OmnibusIncentivePlan(OmnibusPlan).
Stock appreciation rights may be awarded alone or in
tandemwithstockoptions.Whenthestockappreciation
rights are exercisable, the holder may surrender all or a
portion of the unexercised stock appreciation right and
receive in exchange an amount equal to the excess of
the fair market value at the date of exercise over the fair
marketvalueatthedateofthegrant.Nostockapprecia-
tion rights have been granted to date.
AnyrestrictedstockorRSUsawardedaresubjectto
certain general restrictions. e restricted stock shares or
units may not be sold, transferred, pledged or disposed
of until the restrictions on the shares or units have lapsed
or have been removed under the provisions of the plan.
In addition, if a holder of restricted shares or units ceases
to be employed by the Company, any shares or units in
which the restrictions have not lapsed will be forfeited.
e2003Non-EmployeeDirectorStockOption
Plan(NEDP)providednon-qualiedstockoptions
tonon-employeemembersoftheCompany’sBoardof
Directors. e stock options were functionally equivalent
tosuchoptionsissuedundertheEIPdiscussedabove.e
exercise price of each stock option granted equaled the
closingmarketpriceoftheCompany’sstockonthedateof
grant. e options generally vested immediately. is plan
wasterminatedonJune16,2011andreplacedwiththe
Company’sOmnibusIncentivePlan(OmnibusPlan).
e2003DirectorDeferredCompensationPlan
permitsanyoftheCompany’sdirectorswhoreceivea
retainer or other fees for Board or Board committee
service to defer all or a portion of such fees until a future
date, at which time they may be paid in cash or shares of
theCompany’scommonstock,orreceivealloraportion
of such fees in non-statutory stock options. Deferred fees
thatarepaidoutincashwillearninterestatthe30-year
Treasury Bond Rate. If a director elects to be paid in
common stock, the number of shares will be determined
by dividing the deferred fee amount by the closing market
priceofashareoftheCompany’scommonstockon
the date of deferral. e number of options issued to a
director will equal the deferred fee amount divided by
33%ofthepriceofashareoftheCompany’scommon
stock. e exercise price will equal the fair market value
oftheCompany’scommonstockatthedatetheoptionis
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4.0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, nonquali-
ed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0.5million,0.7millionand1.1
millionservice-basedRSUs,netofforfeituresin2012,
2011and2010,respectively,fromtheOmnibusPlan,
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$21.9million,$19.2millionand
$17.3millionofexpenserelatedtotheseRSUsduring
2012,2011and2010,respectively.AsofFebruary
2,2013,therewasapproximately$21.8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2012,theCompanygranted0.2millionRSUs
from the Omnibus Plan to certain officers of the
Company, contingent on the Company meeting certain
performancetargetsin2012andfutureserviceofthese
ocersthroughMarch2015.eCompanymetthese
performancetargetsinscal2012;therefore,thefairvalue
oftheseRSUsof$8.1millionisbeingexpensedoverthe
service period or a shorter period based on the retirement
eligibilityofthegrantee.eCompanyrecognized$5.7
millionofexpenserelatedtotheseRSUsin2012.efair
valueoftheseRSUswasdeterminedusingtheCompany’s
closing stock price on the grant date.
In2011,theCompanygranted0.3millionRSUs
fromtheEIPandtheEOEPtocertainocersofthe
Company, contingent on the Company meeting certain
performancetargetsin2011andfutureserviceofthese
ocersthroughMarch2014.eCompanymetthese
performancetargetsinscal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
2012AnnualReport45