Famous Footwear 2012 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 2012 Famous Footwear annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

74 2012 BROWN SHOE COMPANY, INC. FORM 10-K
The following table summarizes stock option activity for 2012 under the current and prior plans:
Number of Weighted-Average
Options Exercise Price
Outstanding at January 28, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,662,610 $ 15.79
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,000 9.18
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (139,243) 10.10
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (253,935) 18.43
Canceled or expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,625) 8.04
Outstanding at February 2, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,289,807 $ 15.81
Exercisable at February 2, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,100,607 $ 16.88
The intrinsic value of stock options exercised was $0.5 million, $0.4 million and $1.1 million for 2012, 2011 and 2010,
respectively. The amount of cash received from the exercise of stock options was $0.9 million in each of 2012, 2011 and
2010. In addition, 33,033, 349 and 7,124 shares were tendered by employees in satisfaction of the exercise price of stock
options during 2012, 2011 and 2010, respectively. The tax impact associated with stock options exercised was less than
$0.1 million for 2012, less than $0.1 million for 2011, and $0.2 million for 2010.
The following table summarizes nonvested stock option activity for 2012 under the current and prior plans:
Number of Weighted-Average
Nonvested Grant Date
Options Fair Value
Nonvested at January 28, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278,275 $ 5.26
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,000 5.46
Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (95,350) 5.1 8
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,725) 6.50
Nonvested at February 2, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189,200 $ 5.07
The weighted-average grant date fair value of stock options granted for 2012, 2011 and 2010 was $5.46, $6.83 and
$7.48, respectively. The total grant date fair value of stock options vested during 2012, 2011 and 2010 was $0.5 million,
$0.9 million and $1.3 million, respectively. As of February 2, 2013, the total remaining unrecognized compensation
cost related to nonvested stock options amounted to $0.3 million, which will be amortized over the weighted-average
remaining requisite service period of 2.4 years.
Restricted Stock
Under the Company’s incentive compensation plans, restricted stock of the Company may be granted at no cost to certain
ocers, key employees and directors. Plan participants are entitled to cash dividends and voting rights for their respective
shares. Restrictions limit the sale or transfer of these shares during the requisite service period, which generally ranges from
one to eight years. Expense for restricted stock grants is recognized on a straight-line basis separately for each vesting
portion of the stock award based upon fair value of the award on the date of grant. The fair value of the restricted stock
grants is the quoted market price for the Company’s common stock on the date of grant.
The following table summarizes restricted stock activity for the year ended February 2, 2013:
Number of Weighted-Average
Nonvested Grant Date
Restricted Shares Fair Value
Nonvested at January 28, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,850,297 $ 11.09
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 759,400 9.71
Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (330,072) 14.43
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (169,300) 11.39
Nonvested at February 2, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,110,325 $ 10.14
For the years ended February 2, 2013, January 28, 2012 and January 29, 2011, restricted shares granted were 759,400,
656,350 and 565,864, respectively. Restricted shares forfeited during 2012, 2011 and 2010 were 169,300, 186,350 and 100,719,
respectively. The weighted-average fair value of restricted stock awards granted for the years ended February 2, 2013,
January 28, 2012, and January 29, 2011, was $9.71, $13.78 and $13.97, respectively. The total grant date fair value of restricted
stock awards vested during the years ended February 2, 2013, January 28, 2012 and January 29, 2011, was $4.8 million,
$3.4 million and $4.4 million, respectively. As of February 2, 2013, the total remaining unrecognized compensation cost related
to nonvested restricted stock grants amounted to $10.2 million, which will be amortized over the weighted-average remaining
requisite service period of 1.7 years.
The Company recognized $0.9 million and $1.0 million in 2012 and 2011, respectively, of excess tax benefits related to restricted
stock vesting and dividends, which was reflected as an increase to additional paid-in capital. During 2010, the Company
recognized $0.3 million, of excess tax deficiencies related to restricted stock vesting and dividends, which was reflected as a
decrease to additional paid-in capital.