Dollar Tree 2015 Annual Report Download - page 85

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In 2013, 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 2013 and future service of these officers through March 2016. The
Company met these performance targets in fiscal 2013; therefore, the fair value of these RSUs of $9.9 million is being
expensed over the service period or a shorter period based on the retirement eligibility of the grantee. The Company
recognized $0.9 million, $1.1 million and $6.5 million of expense related to these RSUs in 2015, 2014 and 2013,
respectively. The fair value of these RSUs was determined using the Company’s closing stock price on the grant date.
In 2015, the Company granted RSUs with an estimated fair value of $2.3 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 February 1, 2015 and ending on February 3, 2018. Providing the vesting conditions are satisfied, the awards will vest at the
end of the performance period. The estimated fair value of these RSUs is being expensed over the performance period or a
shorter period based on the retirement eligibility of the grantee. The Company recognized $1.4 million of expense related to
these RSUs in 2015. The estimated fair value of these RSUs was determined using the Company's closing stock price on the
grant date.
In 2014, the Company granted RSUs with an estimated fair value of $2.0 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 February 2, 2014 and ending on January 28, 2017. Providing the vesting conditions are satisfied, the awards will vest at the
end of the performance period. The estimated fair value of these RSUs is being expensed over the performance period or a
shorter period based on the retirement eligibility of the grantee. The Company recognized $0.4 million and $1.0 million of
expense related to these RSUs in 2015 and 2014, respectively. The estimated fair value of these RSUs was determined using
the Company's closing stock price on the grant date.
In 2013, the Company granted RSUs ("2013 Grants") with an estimated fair value of $1.7 million from the Omnibus Plan
to certain officers of the Company. Each officer had 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 February 3, 2013 and ending on January 30, 2016 ("2013 Goal"). The estimated fair value was being
expensed over the performance period or a shorter period based on the retirement eligibility of the grantee. The Company
recognized $0.4 million and $1.0 million of expense related to these RSUs in 2014 and 2013, respectively. The estimated fair
value of these RSUs was determined using the Company's closing stock price on the grant date. However, because the
Acquisition was not yet contemplated as of the grant date, the 2013 Goal did not exclude costs related to the Acquisition or any
income that may be attributable to Family Dollar during the performance period. In 2015, the Company concluded that
maintaining the 2013 Grants in their original form would undermine the Company's goals and create skewed incentives for the
grantees.
Because amending the 2013 Goal would have jeopardized deductibility of the awards under Section 162(m) of the Internal
Revenue Service Code, in 2015 the Compensation Committee of the Board of Directors canceled the 2013 Grants and approved
new awards ("2015 Supplemental Grants"), with a fair value of $2.2 million and a new operating income goal for the one-year
period ending January 30, 2016 ("2015 Supplemental Goal"). The 2015 Supplemental Goal equals the amount remaining in the
final year of the 2013 Goal, giving credit for actual Company performance utilizing an operating income definition that
excludes both costs related to the Acquisition and income from Family Dollar. As such, the 2015 Supplemental Grants exactly
replicate the incentive structure of the 2013 Grants had those awards excluded the effect of the then-unknown and
unforeseeable Acquisition when they were granted. The Company recognized a $1.2 million reduction of expense related to the
2013 Grants cancellation and $2.4 million of expense related to the 2015 Supplemental Grants in 2015.
In 2012, the Company granted 0.2 million RSUs with a fair value of $10.0 million from the Omnibus Plan to the Chief
Executive Officer of the Company, contingent on the Company meeting certain performance targets for the period beginning
July 29, 2012 and ending on August 3, 2013 and the grantee completing a five-year service requirement. The fair value of
these RSUs is being expensed ratably over the five-year vesting period. The Company recognized $2.0 million, $2.0 million
and $2.0 million of expense related to these RSUs in 2015, 2014 and 2013, respectively. The fair value of these RSUs was
determined using the Company's closing stock price on the grant date.
In 2015, the Company granted 0.1 million service-based RSUs with a fair value of $7.9 million from the Omnibus Plan.
The estimated fair value of these RSUs is being expensed ratably over the three-year vesting period. The Company recognized
$1.0 million of expense related to these RSUs in 2015.
On March 18, 2016, the Company granted approximately 0.1 million RSUs with a fair value of $5.0 million from the
Omnibus Plan to the President of the Company, contingent on the Company meeting certain performance targets for the period