Stock Based Compensation |
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| Stock Based Compensation | 10. Stock Based Compensation As of November 2, 2024, there were 3,967,586 shares of common stock available for issuance under the Company’s 2022 Omnibus Incentive Plan. Non-cash stock compensation expense is as follows:
(a) Included in the line item “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income. (b) The amounts presented in the table above exclude taxes. For the three and nine month periods ended November 2, 2024, the tax benefit related to the Company’s non-cash stock compensation was approximately $4.4 million and $12.3 million, respectively. For the three and nine month periods ended October 28, 2023, the tax benefit related to the Company’s non-cash stock compensation was approximately $4.1 million and $10.9 million, respectively. Stock Options Stock option transactions during the nine month period ended November 2, 2024 are summarized as follows:
(a) Options exercised during the nine month period ended November 2, 2024 had a total intrinsic value of $12.0 million. The following table summarizes information about the stock options vested and expected to vest during the contractual term of such options as of November 2, 2024:
The fair value of each stock option granted during the nine month period ended November 2, 2024 was estimated using the Black Scholes option pricing model using the following assumptions on a weighted average basis:
The expected dividend yield was based on the Company’s expectation of not paying dividends in the near term. To evaluate its volatility factor, the Company uses the historical volatility of its stock price over the expected life of the options. The risk free interest rate was based on the U.S. Treasury rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the awards being valued. The expected life of the options was estimated using historical exercise rates. Restricted Stock Units Restricted stock unit transactions during the nine month period ended November 2, 2024 are summarized as follows:
(a) Restricted stock units vested during the nine month period ended November 2, 2024 had a total intrinsic value of $31.3 million.
The fair value of each share of restricted stock granted during the nine month period ended November 2, 2024 was based upon the closing price of the Company’s common stock on the grant date. Performance Stock Units The Company grants performance-based restricted stock units to its senior executives. Vesting of the performance stock units granted in Fiscal 2021 is based on continued service and the achievement of pre-established adjusted EBIT margin expansion and sales compounded annual growth rate (CAGR) goals (each weighted equally) over a three-year performance period. Vesting of the performance stock units granted in Fiscal 2022, Fiscal 2023, and Fiscal 2024 are based on continued service and the achievement of pre-established adjusted net income per share growth over a three-year performance period. Based on the Company’s achievement of these goals, each award may be earned up to 200% of the target award. In the event that actual performance is below threshold, no award will be made. Compensation costs recognized on the performance stock units are adjusted, as applicable, for performance above or below the target specified in the award. Performance stock unit transactions during the nine month period ended November 2, 2024 are summarized as follows:
(a) Performance-based stock awards vested during the nine month period ended November 2, 2024 had a total intrinsic value of $10.1 million. |
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