Express 2010 Annual Report Download - page 100

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The Company’s activity with respect to RSUs for 2010 was as follows:
Number of
Shares
Grant Date
Weighted Average
Fair Value
(in thousands, except per share amounts)
Unvested, January 30, 2010 ............. — $—
Granted ......................... 44 4.88
Vested .......................... — —
Forfeited ........................ — —
Unvested, January 29, 2011 ............. 44 $4.88
As of January 29, 2011, there was less than $0.1 million of total unrecognized compensation expense related to
unvested RSUs. That cost is expected to be recognized over a weighted-average period of approximately 1.5
years.
Restricted Shares
The Company’s activity with respect to restricted shares for 2010 was as follows:
Number of
Shares
Grant Date
Weighted Average
Fair Value
(in thousands, except per share amounts)
Unvested, January 30, 2010 ............. 2,836 $1.19
Granted ......................... — —
Vested .......................... (2,557) 1.24
Repurchased ..................... (59) 0.97
Unvested, January 29, 2011 ............. 220 $1.03
No restricted shares were granted in 2010. The weighted average grant date fair value of restricted shares granted
during 2009 and 2008 was $1.51 and $0.90, respectively.
On May 12, 2010, in conjunction with the IPO, certain restricted shares became fully vested. The total fair value
of restricted shares that vested during 2010, 2009, and 2008 was $3.2 million, $2.0 million, and $3.0 million,
respectively.
As of January 29, 2011, there was approximately $0.2 million of total unrecognized compensation expense
related to unvested restricted shares. That cost is expected to be recognized over a weighted-average period of
approximately 0.9 years.
Valuation of Underlying Restricted Shares
Fair value of the underlying equity shares is determined by applying a contingent claims approach utilizing the
Black-Scholes-Merton pricing model and taking into consideration the rights and preferences of the underlying
equity shares. This model assumes asset volatility for comparable company’s equity volatility and leverage and a
marketability discount to reflect the lack of liquidity and ready market.
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