Stein Mart 2011 Annual Report Download - page 42

Table of Contents
STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
Employee Stock Purchase Plan
We have an Employee Stock Purchase Plan (the “Stock Purchase Plan”) whereby all employees who complete six months employment and
who work on a full-time basis or are regularly scheduled to work more than 20 hours per week are eligible to participate in the Stock Purchase
Plan. Participants in the Stock Purchase Plan may purchase shares of the Company’s common stock at 85% of the lower of the fair market
value of the Company’s stock determined at either the beginning or the end of each semi-annual option period. Shares eligible under the Stock
Purchase Plan, which is effective for the years 1997 through 2015, are limited to 2.8 million shares in the aggregate, with no more than 200,000
shares being made available in each calendar year, excluding carryover from previous years. In 2011, 2010 and 2009, the participants acquired
112,139 shares, 145,395 shares and 154,895 shares of common stock at weighted-average per share prices of $6.61, $5.27 and $3.38,
respectively. The fair value of Stock Purchase Plan shares was estimated using the Black-Scholes call option value method with the following
weighted-average assumptions for 2011: expected volatility of 42.2%, expected dividend yield of 0%, a risk-free interest rate of 0.2%, a
present-value discount factor of 1.0% and an expected term of six months. Share-based compensation expense for the Stock Purchase Plan was
$0.3 million in 2011, 2010 and 2009, respectively.
Omnibus Plan
Our Omnibus Plan provides that shares of common stock may be granted to certain key employees and outside directors through non-qualified
stock options, incentive stock options, stock appreciation rights, performance awards, restricted stock, or any other award made under the terms
of the plan. The Board of Directors, or its delegated authority, determines the exercise price and all other terms of all grants. The shares will be
issued from authorized and unissued shares of our common stock. Expired and forfeited awards become available for re-issuance. Vesting and
exercise are contingent on continued employment.
The following table presents the number of awards authorized and available for grant under the Omnibus Plan at January 28, 2012 (shares in
thousands):
Stock Options
In accordance with the Omnibus Plan, the exercise price of an option cannot be less than the fair value on the grant date. In general, one-third
of the awards granted become exercisable on each of the third, fourth and fifth anniversary dates of grant and the awards expire seven years
after the date of grant.
A summary of stock option information for the year ended January 28, 2012 is as follows (in thousands, except per share amounts):
The aggregate intrinsic value of outstanding and exercisable stock options, representing the excess of our closing stock price on January 27,
2012 ($7.35 per share) over the exercise price, multiplied by the applicable number of in-the-money options, was $0.4 million. This amount
changes based on the fair market value of our common stock. There were 0.1 million in-the-money options outstanding at January 28, 2012.
As of January 28, 2012, there was $0.3 million of unrecognized compensation cost related to stock options which is expected to be recognized
over a weighted-average period of 1.1 years using the mid-point method. The weighted-average grant-date fair value of options granted was
$4.36, $5.78, and $6.71 during 2011, 2010, and 2009, respectively. The total intrinsic value of stock options exercised was $0.6 million, $7.9
million, and $0.4 million during 2011, 2010 and 2009, respectively. The total tax benefit realized from the exercise of stock options was $0.1
million, $2.6 million, and $0.1 million during 2011, 2010 and 2009, respectively.
F
-
15
Shares
Total awards authorized
10,500
Awards available for grant
5,678
Number of
Shares
Weighted-
Average
Exercise Price
Weighted-
Average
Remaining
Contractual Term
Outstanding at January 29, 2011
1,985
$
9.74
Granted
30
8.12
Exercised
(279
)
8.00
Cancelled or forfeited
(710
)
7.06
Outstanding at January 28, 2012
1,026
$
12.02
2.2 years
Exercisable stock options at January 28, 2012
860
$
12.56
1.7 years