Stein Mart 2015 Annual Report Download - page 43

STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
F-19
In February 2015, as a result of paying a special cash dividend, all outstanding stock options were modified to decrease the exercise price
and increase the number of options in order to maintain the original grant fair value. No incremental stock compensation expense resulted
from the modification.
Restricted Stock and Performance Share Awards
We have issued restricted stock and performance share awards to eligible Key Employees, Non-Employee Directors, and Advisor
Participants, as defined in the Omnibus Plan. All restricted stock awards have restriction periods tied primarily to employment, and all
performance share awards have vesting tied to market-based performance and service. Shares awarded under the Omnibus Plan entitle
the shareholder to all rights of common stock ownership except that the shares may not be sold, transferred, pledged, exchanged or
otherwise disposed of during the restriction period. Vesting for most awards is based on the service period and vesting generally occurs
between three and five years following the date of grant. Unvested shares are forfeited upon termination of employment. The total value
of share-based compensation expense for restricted stock is based on the closing price of our common stock on the date of grant. The fair
value of the market-based performance share awards was determined using a Monte-Carlo simulation model. Performance share awards
provide the right to receive a share award at the end of a specified period in which a performance goal based on total shareholder return
has been established.
The following table summarizes non-vested stock activity for the year ended January 30, 2016, respectively (shares in thousands):
Weighted- Weighted-
Av erage Av erage
Grant Date Grant Date
Shares Fair Value Shares Fair Value
Non-vested at January 31, 2015 738 11.59$ 540 15.28$
Granted 378 10.54 486 14.34
Vested (280) 10.75 (469) 10.17
Cancelled or forfeited (139) 11.59 (199) 11.75
Special cash dividend adjustment - N/A 234 N/A
Non-vested at January 30, 2016 697 11.36$ 592 12.58$
Total unrecognized compensation cost 4,642$ 4,323$
Weighted-average expected life remaining 1.1 years 0.9 years
Performance Share Awards
Restricted Stock Awards
The total fair value of restricted stock vested was $3.0 million, $2.9 million and $2.8 million 2015, 2014, and 2013, respectively. The total
fair value of performance awards vested was $4.8 million and $8.6 during 2015 and 2014, respectively. There were no performance
awards vested in 2013.
In February 2015, as a result of paying a special cash dividend, all outstanding performance share awards were modified to increase the
number of shares in order to maintain the original grant fair value. No incremental stock compensation expense resulted from the
modification. The restricted stock awards did not require modification because they participated in the special cash dividend.
Share-Based Compensation Expense
For the years ended January 30, 2016, January 31, 2015 and February 1, 2014, share-based compensation expense was recorded as
follows:
2015 2014 2013
Cost of merchandise sold 2,118$ 2,765$ 2,548$
Selling, general and administrative expenses 4,398 4,831 4,743
Total share-based compensation expense 6,516$ 7,596$ 7,291$
The total tax benefit recognized in the Consolidated Statements of Income related to share-based compensation expense was $2.5 million,
$2.9 million and $2.8 million for 2015, 2014 and 2013, respectively.