Urban Outfitters 2011 Annual Report Download - page 79

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URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(in thousands, except share and per share data)
The following table summarizes the Company’s SAR activity:
Fiscal Year Ended January 31, 2011
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
(years)
Aggregate
Intrinsic
Value
Awards outstanding at beginning of year .............. — $ —
Granted ......................................... 495,100 32.84
Exercised ....................................... — —
Forfeited / Cancelled .............................. (6,300) 32.80
Expired ......................................... — —
Awards outstanding at end of year ................... 488,800 32.84 7.6 $ 491
Awards outstanding expected to vest ................. 464,360 32.84 7.6 $ 466
Awards exercisable at end of year .................... — — — $ —
Weightedaveragegrantdatefairvalue—pershare....... $ 12.57
Total compensation cost of SARs granted, but not yet vested as of January 31, 2011 was $5,374,
which is expected to be recognized over the weighted average period of 4.6 years.
Performance Share Units
The Company grants PSU’s which vest based on the achievement of various company
performance targets and external market conditions. The fair value of the PSU’s are determined using
a Monte Carlo simulation. Once the Company determines that it is probable that the performance
targets will be met, compensation expense is recorded for these awards. If any of these criteria are not
met, the awards are forfeited. Each PSU is equal to one share of common stock with varying maximum
award value limitations. PSU’s typically vest over a two to seven year period.
The following table summarizes the Company’s PSU activity for the fiscal year ended
January 31, 2011:
Shares
Weighted
Average
Fair Value
Non-vested awards outstanding at beginning of year ........... 1,139,116 $24.16
Granted ............................................... 400,300 24.03
Vested ............................................... (46,439) 16.44
Forfeited / Cancelled .................................... (51,611) 20.99
Non-vested awards outstanding at end of year ................ 1,441,366 24.57
The aggregate grant date fair value of PSU’s granted during fiscal 2011, 2010 and 2009 was
$9,621, $26,932 and $1,238, respectively. The aggregate grant date fair value of PSU’s vested during
fiscal 2011 was $1,060. No PSU’s vested during fiscal 2010 or 2009. Total unrecognized
compensation cost related to non-vested PSU’s as of January 31, 2011 was $29,115 which is expected
to be recognized over a weighted average period of 4.8 years.
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