Stein Mart 2012 Annual Report Download - page 52

STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
F-24
The following reflects the components of net periodic post-retirement benefit (income) cost:
2012 2011 2010
Service cost 790$ 655$ 533$
Interest cost 404 366 318
A
mortization of (gain) loss 93 - (29)
Gain due to settlement (7,680) - -
Net periodic post-retirement benefit (income) cost (6,393)$ 1,021$ 822$
Amounts included in Accumulated other comprehensive loss consisted of:
February 2, January 28,
2013 2012
Total net actuarial loss 315$ 1,248$
In connection with the executive deferral and executive split-dollar life insurance plans, whole life insurance contracts were purchased on
the related participants. At February 2, 2013 and January 28, 2012, the cash surrender value of these policies was $17.7 million and $14.1
million, respectively, and is included in Other assets in the Consolidated Balance Sheets.
We have a noncontributory executive retiree medical plan wherein eligible retired executives may continue their pre-retirement medical,
dental and vision benefits through age 65. The postretirement benefit liability was $0.4 million at February 2, 2013 and January 28, 2012.
Accumulated other comprehensive loss on the Consolidated Balance Sheets includes $0.2 million for this plan at February 2, 2013 and
January 28, 2012. The expense recorded in Net income for 2012, 2011 and 2010 was insignificant.
9. Shareholders’ Equity
Dividend
On November 27, 2012 the Board of Directors declared a special dividend of $1.00 per common share that was paid on December 24,
2012 to shareholders of record on December 10, 2012. On November 10, 2010, the Board of Directors declared a special cash dividend of
$0.50 per common share that was paid on December 22, 2010 to shareholders of record on December 8, 2010. There were no cash
dividends declared or paid in fiscal 2011.
Stock Repurchase Plan
During 2012, 2011 and 2010, we repurchased 574,686 shares, 1,653,841 shares and 870,531 shares of our common stock in the open
market at a total cost of $3.9 million, $12.1 million and $7.1 million, respectively. Stock repurchases for taxes due on the vesting of
employee stock awards during 2012 and 2011 included 123,770 and 1,566,910 shares, respectively, purchased on the open market under
a Board of Directors authorized plan. On June 14, 2011, the Board of Directors approved an increase of 2.5 million shares in the number
of shares of the Company’s stock which the Company would be authorized to re-purchase. As of February 2, 2013, there are 890,933
shares which can be repurchased pursuant to the Board of Directors’ current authorization.
Employee Stock Purchase Plan
We have an Employee Stock Purchase Plan (the “Stock Purchase Plan”) whereby all employees who complete six months of 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 2012, 2011 and
2010, the participants acquired 64,170 shares, 112,139 shares and 145,395 shares of common stock at weighted-average per share
prices of $5.79, $6.61 and $5.27, 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 2012: expected volatility of 59.7%, expected dividend yield of
0%, a risk-free interest rate of 0.1%, 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 $0.1 million, $0.3 and $0.3 million in 2012, 2011 and 2010, respectively.