In June 2014, the Company's stockholders approved the adoption of the lululemon athletica inc. 2014 Equity Incentive Plan ("2014 Plan"). The 2014 Plan provides for awards in the form of stock options, stock appreciation rights, restricted stock purchase rights, restricted share bonuses, restricted stock units, performance shares, performance-based restricted stock units, cash-based awards, other stock-based awards, and deferred compensation awards to employees (including officers and directors who are also employees), consultants, and directors of the Company.

The Company has granted stock options, performance-based restricted stock units, restricted stock units, and restricted shares. Stock options granted to date generally have a four-year vesting period and vest at a rate of 25% each year on the anniversary date of the grant. Stock options generally expire on the earlier of seven years from the date of grant, or a specified period of time following termination. Performance-based restricted stock units issued generally vest three years from the grant date and restricted shares generally vest one year from the grant date. Restricted stock units granted generally have a three-year vesting period and vest at a certain percentage each year on the anniversary date of the grant.

Total unrecognized compensation cost for all stock-based compensation plans was $118.0 million as of January 29, 2023, which is expected to be recognized over a weighted-average period of 2.1 years, and was $96.7 million as of January 30, 2022 over a weighted-average period of 2.0 years.


	Stock Options			Performance-Based Restricted Stock Units			Restricted Shares			Restricted Stock Units			Restricted Stock Units (Liability Accounting)
	Number	Weighted-Average Exercise Price		Number	Weighted-Average Grant Date Fair Value		Number	Weighted-Average Grant Date Fair Value		Number	Weighted-Average Grant Date Fair Value		Number	Weighted-Average Fair Value
	(In thousands, except per share amounts)
Balance as of February 2, 2020	776	$	113.41	238	$	103.52	7	$	175.82	333	$	108.44	29	$	239.39
Granted	241	182.78		140	122.21		4	299.09		130	208.35		—	—
Exercised/vested	182	83.89		171	63.03		7	175.82		175	87.31		14	366.42
Forfeited/expired	31	155.33		8	155.08		—	—		13	162.60		—	—
Balance as of January 31, 2021	804	$	139.27	199	$	149.20	4	$	299.09	275	$	166.50	15	$	328.68
Granted	194	310.29		139	185.37		4	326.70		129	331.42		—	—
Exercised/vested	174	104.85		165	100.89		4	299.09		144	139.33		15	397.83
Forfeited/expired	35	199.76		6	216.62		—	—		22	235.23		—	—
Balance as of January 30, 2022	789	$	186.10	167	$	225.27	4	$	326.70	238	$	265.90	—	$	—
Granted	192	371.04		117	274.90		5	308.66		120	364.51		—	—
Exercised/vested	93	127.68		114	170.04		4	326.70		111	241.02		—	—
Forfeited/expired	22	286.56		4	307.76		—	—		26	334.39		—	—
Balance as of January 29, 2023	866	$	230.78	166	$	295.93	5	$	308.66	221	$	323.89	—	$	—

The Company's performance-based restricted stock units are awarded to eligible employees and entitle the grantee to receive a maximum of two shares of common stock per performance-based restricted stock unit if the Company achieves specified performance goals and the grantee remains employed during the vesting period. The fair value of performance-based restricted stock units is based on the closing price of the Company's common stock on the grant date. Expense for performance-based restricted stock units is recognized when it is probable that the performance goal will be achieved.

The grant date fair value of the restricted shares and restricted stock units is based on the closing price of the Company's common stock on the grant date. Restricted stock units that are settled in cash or common stock at the election of the employee are remeasured to fair value at the end of each reporting period until settlement. This fair value is based on the closing price of the Company's common stock on the last business day before each period end.

The grant date fair value of each stock option granted is estimated on the date of grant using the Black-Scholes model. The closing price of the Company's common stock on the grant date is used in the model. The assumptions used to calculate the fair value of the options granted are evaluated and revised, as necessary, to reflect market conditions and the Company's historical experience. The expected term of the options is based upon the historical experience of similar awards, giving consideration to expectations of future employee exercise behavior. Expected volatility is based upon the historical volatility of the Company's common stock for the period corresponding with the expected term of the options. The risk-free interest rate is based on the U.S. Treasury yield curve for the period corresponding with the expected term of the options. The following are weighted averages of the assumptions that were used in calculating the fair value of stock options granted in 2022, 2021, and 2020:


	Outstanding					Exercisable
Range of Exercise Prices	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Life (Years)	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Life (Years)
	(In thousands, except per share amounts and years)
$2.78-$155.97	173		$	98.43	2.1	173		$	98.43	2.1
$167.54-$174.52	170		167.78		3.2	111		167.76		3.2
$188.84-$296.36	161		189.55		4.2	69		189.61		4.2
$306.71-$326.39	179		307.53		5.3	38		307.48		5.1
$327.22-$426.44	183		375.52		6.1	4		362.50		5.3
	866		$	230.78	4.2	395		$	156.64	3.1
Intrinsic value	$	81,280				$	61,050

As of January 29, 2023, the unrecognized compensation cost related to these options was $29.7 million, which is expected to be recognized over a weighted-average period of 2.6 years. The weighted-average grant date fair value of options granted during 2022, 2021, and 2020 was $124.17, $94.09, and $74.91, respectively.


	2022		2021		2020
	(In thousands)
Stock options	$	19,906	$	46,761	$	37,022
Performance-based restricted stock units	37,672		52,495		32,384
Restricted shares	1,152		1,364		2,115
Restricted stock units	37,275		47,042		37,791
Restricted stock units (liability accounting)	—		5,938		5,309
	$	96,005	$	153,600	$	114,621

The Company's board of directors and stockholders approved the Company's Employee Share Purchase Plan ("ESPP") in September 2007. Contributions are made by eligible employees, subject to certain limits defined in the ESPP, and the Company matches one-third of the contribution. The maximum number of shares authorized to be purchased under the ESPP is 6.0 million shares. All shares purchased under the ESPP are purchased in the open market. During 2022, there were 0.1 million shares purchased.

The Company offers defined contribution pension plans to its eligible employees. Participating employees may elect to defer and contribute a portion of their eligible compensation to a plan up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws. The Company matches 50% to 75% of the contribution depending on the participant's length of service, and the contribution is subject to a two year vesting period. The Company's net expense for the defined contribution plans was $14.0 million, $11.8 million, and $9.2 million during 2022, 2021, and 2020, respectively.