STOCK-BASED COMPENSATION PLAN |
6 Months Ended |
|---|---|
Jul. 30, 2016 | |
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
| STOCK-BASED COMPENSATION PLAN |
STOCK-BASED COMPENSATION
The Company's stock-based compensation expense primarily includes the fair value of restricted stock units (RSUs) and employees' purchase rights under the Company's Employee Stock Purchase Plan. Stock-based compensation expense was $12.5 million and $37.3 million during the 13 and 26 weeks ended July 30, 2016, respectively. Stock-based compensation expense was $9.2 million and $27.8 million during the 13 and 26 weeks ended August 1, 2015, respectively.
The Company granted approximately 0.5 million service-based RSUs from the Omnibus Incentive Plan (Omnibus Plan) to employees and officers in the 26 weeks ended July 30, 2016. The estimated $40.2 million fair value of these RSUs is being expensed ratably over the three-year vesting periods, or shorter periods based on the retirement eligibility of certain grantees. The fair value was determined using the Company's closing stock price on the date of grant. The Company recognized $4.1 million and $9.1 million of expense related to these RSUs during the 13 and 26 weeks ended July 30, 2016, respectively.
In the 26 weeks ended July 30, 2016, the Company granted 0.2 million RSUs with a fair value of $17.1 million from the Omnibus Plan to certain officers of the Company, contingent on the Company meeting certain performance targets in fiscal 2016. If the Company meets these performance targets in fiscal 2016, the RSUs will vest ratably over three years. The estimated fair value of these RSUs is being expensed ratably over the three-year vesting periods, or shorter periods based on the retirement eligibility of certain grantees. The Company recognized $1.5 million and $10.4 million of expense related to these RSUs in the 13 and 26 weeks ended July 30, 2016, respectively.
In the 26 weeks ended July 30, 2016, the Company granted RSUs with a fair value of $3.2 million from the Omnibus Plan to certain officers of the Company, contingent on the Company meeting certain performance targets for the period beginning on January 31, 2016 and ending on February 2, 2019. Provided the vesting conditions are satisfied, the awards will vest at the end of the performance period. The estimated fair value of these RSUs is being expensed ratably over the three-year vesting period, or shorter periods based on the retirement eligibility of certain grantees. The Company recognized $0.4 million and $1.7 million of expense related to these RSUs in the 13 and 26 weeks ended July 30, 2016, respectively.
The Company recognized $5.5 million and $13.6 million of expense related to RSUs granted prior to fiscal 2016 in the 13 and 26 weeks ended July 30, 2016, respectively. For the 13 and 26 weeks ended August 1, 2015, respectively, the Company recognized $4.4 million and $10.1 million of expense related to these RSU's.
In the 26 weeks ended July 30, 2016, approximately 0.6 million RSUs vested and approximately 0.4 million shares, net of taxes, were issued. During the 26 weeks ended August 1, 2015, approximately 0.7 million RSUs vested and approximately 0.4 million shares, net of taxes, were issued. In the 13 weeks ended July 30, 2016 less than 0.1 million RSUs vested. Less than 0.1 million RSUs vested in the 13 weeks ended August 1, 2015.
Due to the Acquistion, the Company converted approximately 1.5 million Family Dollar vested and unvested options into equivalent options to purchase Dollar Tree Common Stock at the date of Acquisition and recognized $0.3 million and $1.0 million of expense related to these options during the 13 and 26 weeks ended July 30, 2016, respectively. The Company recognized $1.0 million of expense related to these options in each of the 13 and 26 weeks ended August 1, 2015. Stock options are valued using the Black-Scholes option-pricing model and compensation cost is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period.
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