Restoration Hardware 2012 Annual Report Download - page 157

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Team Resto Ownership Plan – Time-Based Units
The following table presents the time-based unit activity in fiscal 2011 and fiscal 2012:
Number Of
Units
Weighted-
Average
Grant Date
Fair Value
Weighted-
Average
Remaining
Contractual
Life
(In Years)
Outstanding—January 29, 2011 9,801,071 0.61 8.35
Granted 1,626,000 1.28 10.00
Cancelled (570,426) 0.58 9.53
Forfeited (567,925) 1.18 9.78
Outstanding—January 28, 2012 10,288,720 0.69 7.43
Granted — — —
Cancelled (33,000) 0.62 9.36
Forfeited (253,750) 1.24 9.68
Replaced with common stock (10,001,970) 0.67 6.65
Outstanding—February 2, 2013 — — —
The fair value of each time-based unit granted in fiscal 2011 was estimated on the date of grant using a
Monte Carlo method with the following weighted-average assumptions:
Expected volatility 56%
Expected life (years) 0.8
Risk-free interest rate 0.19%
Dividend yield —
As of February 2, 2013, all compensation expense related to time-based units was recorded by the
Company. No stock-based compensation cost had been capitalized in the accompanying consolidated financial
statements.
The Company recorded stock-based compensation expense for time-based units of $1.1 million, $1.6
million, and $1.1 million in fiscal 2012, fiscal 2011, and fiscal 2010, respectively, which is included in selling,
general and administrative expenses on the consolidated statements of operations.
Team Resto Ownership Plan – Performance-Based Units
The following table presents the performance-based unit activity in fiscal 2011 and fiscal 2012:
Number Of
Units
Weighted-
Average
Grant Date
Fair Value
Outstanding—January 29, 2011 9,422,384 0.25
Granted 1,069,000 0.48
Cancelled (762,609) 0.35
Forfeited (607,000) 0.11
Outstanding—January 28, 2012 9,121,775 0.28
Granted — —
Forfeited (45,000) 0.64
Replaced with common stock (9,076,775) 0.28
Outstanding—February 2, 2013 — —
101
Form 10-K