Stein Mart 2012 Annual Report Download - page 53

STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
F-25
Omnibus Plan
Our Omnibus Plan provides that shares of common stock may be granted to certain Key Employees, Non-Employee Directors, and
Advisor Participants, as defined, 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 February 2, 2013 (shares
in thousands):
Shares
Total awards authorized 10,500
A
wards available for grant 4,388
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 February 2, 2013 is as follows (in thousands, except per share amounts):
Weighted- Weighted-Average
A
ggregate
Number of
A
verage Remaining Intrinsic
Shares Exercise Price Contractual Term Value
Outstanding at January 28, 2012 1,026 11.01$
Granted 560 7.13
A
djustments 181 -
Exercised (24) 4.24
Cancelled or forfeited (214) 16.62
Outstanding at February 2, 2013 1,529 8.63$ 4.9 years 2,272$
Exercisable stock options at February 2, 2013 788 10.06$ 1.3 years 987$
The aggregate intrinsic value in the table above represents the excess of our closing stock price on February 1, 2013 ($8.84 per share)
over the exercise price, multiplied by the applicable number of in-the-money options. This amount changes based on the fair market value
of our common stock. There were 1.1 million in-the-money options outstanding at February 2, 2013. The total number of in-the-money
options exercisable at February 2, 2013 was 0.3 million.
As of February 2, 2013, there was $2.0 million of unrecognized compensation cost related to stock options which is expected to be
recognized over a weighted-average period of 1.0 years using the mid-point method. The weighted-average grant-date fair value of
options granted was $3.93, $4.36 and $5.78 during 2012, 2011, and 2010, respectively. The total intrinsic value of stock options exercised
was $0.1 million, $0.6 million and $7.9 million during 2012, 2011 and 2010, respectively. The total tax benefit realized from the exercise of
stock options was $0, $0.1 million and $2.6 million during 2012, 2011 and 2010, respectively.
The fair value of each stock option granted during 2012, 2011 and 2010 was estimated at the date of grant using the Black-Scholes
options pricing model with the following weighted-average assumptions:
2012 2011 2010
Expected term 4.1-5.3 years 4.1 years 5.2 years
Risk-free interest rate 0.88% 1.9% 2.30%
Volatility 62.89%-70.77% 69.7% 73.16%-73.6%
Dividend yield 0% 0% 0%