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74 2013 BROWN SHOE COMPANY, INC. FORM 10-K
Dividend yields are based on historical dividend yields. Expected volatilities are based on historical volatilities of the
Company’s common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in eect at the time of
the grant for periods corresponding with the expected term of the options. The expected term of options represents the
weighted-average period of time that options granted are expected to be outstanding, giving consideration to vesting
schedules and the Company’s historical exercise patterns.
Summarized information about stock options outstanding and exercisable at February 1, 2014 is as follows:
Outstanding Exercisable
Weighted- Weighted- Weighted-
Average Average Average
Number of Remaining Exercise Number of Exercise
Exercise Price Range Options Life (Years) Price Options Price
$3.33 – $8.65 . . . . . . . . . . . . . . . . . . . . . . . . . 68,250 6 $ 4.18 36,500 $ 4.19
$8.66 – $13.97. . . . . . . . . . . . . . . . . . . . . . . . . 52,750 7 10.19 30,000 10.53
$13.98 – $19.29 . . . . . . . . . . . . . . . . . . . . . . . . 423,360 3 15.09 390,110 15.14
$19.30 – $29.93 . . . . . . . . . . . . . . . . . . . . . . . . 132,281 2 21.39 132,281 21.39
$29.94 – $35.25. . . . . . . . . . . . . . . . . . . . . . . . 74,997 3 35.25 74,997 35.25
751,638 3 $ 16.88 663,888 $ 17.85
The weighted-average remaining contractual term of stock options outstanding and currently exercisable at February 1, 2014
was 3.1 years and 2.7 years, respectively. The aggregate intrinsic value of stock options outstanding and currently
exercisable at February 1, 2014 was $6.0 million and $4.7 million, respectively. Intrinsic value for stock options is calculated
based on the exercise price of the underlying awards as compared to the quoted price of the Company’s common stock
as of the reporting date.
The following table summarizes stock option activity for 2013 under the current and prior plans:
Number of Weighted-Average
Options Exercise Price
Outstanding at February 2, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,289,807 $ 15.81
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 17.00
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (474,474) 14.46
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (62,350) 13.62
Canceled or expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,345) 11.37
Outstanding at February 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 751,638 $ 16.88
Exercisable at February 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 663,888 $ 17.85
The intrinsic value of stock options exercised was $4.0 million, $0.5 million, and $0.4 million for 2013, 2012, and 2011,
respectively. The amount of cash received from the exercise of stock options was $4.9 million in 2013 and $0.9 million
in both 2012 and 2011. In addition, 91,157, 33,033, and 349 shares were tendered by employees in satisfaction of the
exercise price of stock options during 2013, 2012, and 2011, respectively.
The Company recognized $0.5 million in 2013 and less than $0.1 million in both 2012 and 2011 of excess tax benefits
related to stock option exercises, which was reflected as an increase to additional paid-in capital.
The following table summarizes nonvested stock option activity for 2013 under the current and prior plans:
Number of Weighted-Average
Nonvested Grant Date
Options Fair Value
Nonvested at February 2, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189,200 $ 5.07
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 9.46
Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (71,450) 5.09
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34,000) 5.48
Nonvested at February 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,750 $ 5.08
The weighted-average grant date fair value of stock options granted for 2013, 2012, and 2011 was $9.46, $5.46, and
$6.83, respectively. The total grant date fair value of stock options vested during 2013, 2012, and 2011 was $0.4 million,
$0.5 million, and $0.9 million, respectively. As of February 1, 2014, the total remaining unrecognized compensation
cost related to nonvested stock options amounted to less than $0.1 million, which will be amortized over the weighted-
average remaining requisite service period of 1.9 years.