Restoration Hardware 2014 Annual Report Download - page 108

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The Company recorded stock-based compensation expense for stock options of $6.9 million, $1.3 million
and $0.1 million in fiscal 2014, fiscal 2013 and fiscal 2012 (subsequent to expense incurred at the time of the
Reorganization), respectively. As of January 31, 2015, the total unrecognized compensation expense related to
unvested options was $30.5 million, which is expected to be recognized on a straight-line basis over a weighted-
average period of 3.97 years.
2012 Stock Incentive Plan—Restricted Stock Awards
The Company grants restricted stock awards, which include restricted stock and restricted stock units, to its
employees and members of its Board of Directors. A summary of restricted stock award activity under the Stock
Incentive Plan for fiscal 2014 is as follows:
Options
Weighted-Average
Grant Date Fair Value Intrinsic Value
Outstanding—February 1, 2014 289,747 $65.36
Granted 562,832 63.59
Released (96,186) 64.17
Cancelled (36,395) 66.25
Outstanding—January 31, 2015 719,998 $64.09 $63,021,425
A summary of additional information about restricted stock awards is as follows:
Fiscal 2014 Fiscal 2013 Fiscal 2012
Weighted-average fair value per share of awards
granted $63.59 $65.37 $24.00
Grant date fair value of awards released (in
thousands) $6,172 $ 760 $ 975
The Company recorded stock-based compensation expense for restricted stock awards of $10.2 million and
$2.7 million in fiscal 2014 and fiscal 2013, respectively. As of January 31, 2015, the total unrecognized
compensation expense related to unvested restricted stock awards was $34.2 million, which is expected to be
recognized on a straight-line basis over a weighted-average period of 3.77 years.
2012 Equity Replacement Plan
In connection with the Reorganization, the Board of Directors adopted the Restoration Hardware 2012
Equity Replacement Plan (the “Replacement Plan”), and outstanding units under the Team Resto Ownership Plan
were replaced with vested and unvested shares of common stock under the Replacement Plan, in some cases
subject to selling restrictions.
A portion of the shares issued under the Replacement Plan, which are fully vested, are subject to resale
restrictions whereby the holder may not sell the shares until the earlier of 20 years after the initial public offering,
or with respect to 818,209 of these shares, such resale restrictions will lapse over time in accordance with the
dates set forth in the applicable award agreement.
The Company recorded a non-cash compensation charge at the Reorganization of $39.1 million related to
the awards granted under the Replacement Plan in fiscal 2012.
A portion of the shares issued under the Replacement Plan are unvested restricted shares issued to
Mr. Friedman and Mr. Alberini in replacement of certain of their performance-based units granted under the
Team Resto Ownership Plan. With respect to the 1,331,548 shares received by Mr. Friedman and Mr. Alberini in
104