Ulta Beauty, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Share-based awards (Tables)

Share-based awards (Tables)

12 Months Ended

Feb. 01, 2020

Schedule of information related to the incentive award plan


	Fiscal		Fiscal		Fiscal
2011 Incentive award plan (in thousands)	2019		2018		2017
Compensation expense
Common stock options	$	8,660	$	8,590	$	8,993
Restricted stock units		12,762		12,077		9,507
Performance-based restricted stock units		4,220		6,822		5,899
Total stock compensation expense	$	25,642	$	27,489	$	24,399

Cash received from stock option exercises	$	43,780	$	13,121	$	16,190
Income tax benefit	$	11,600	$	6,135	$	10,024

Schedule of weighted average assumptions to determine grant date fair value of employee stock options



	Fiscal	Fiscal	Fiscal
	2019	2018	2017
Volatility rate	31.0%	29.0%	30.9%
Average risk-free interest rate	2.3%	2.4%	1.6%
Average expected life (in years)	3.5	3.4	3.5
Dividend yield	None	None	None


Common stock options	Fiscal		Fiscal		Fiscal
(in thousands, except weighted-average grant date fair value)	2019		2018		2017
Weighted-average grant date fair value	$	89.91	$	50.10	$	69.61
Fair value of options vested		9,143		10,042		5,656
Intrinsic value of options exercised		51,650		25,902		29,449

Schedule of options outstanding and exercisable based on ranges of exercise prices

The following table presents information related to options outstanding and options exercisable at February 1, 2020, under the Company’s stock option plans based on ranges of exercise prices (shares in thousands):


	Options outstanding				Options exercisable
		Weighted-				Weighted-
		average				average
		remaining				remaining
		contractual		Weighted-		contractual		Weighted-
	Number of	life		average	Number of	life		average
Range of Exercise Prices	options	(years)		exercise price	options	(years)		exercise price
$25.80 – $57.42	28	1	$	47.26	28	1	$	47.26
$57.43 – $127.15	30	3		92.37	30	3		92.37
$127.16 – $165.27	155	6		163.70	55	6		163.04
$165.28 – $204.27	155	8		201.54	25	7		198.39
$204.28 – $281.53	81	7		278.76	34	7		278.90
$281.54 – $348.73	90	9		348.73	–	–		–
$25.80 – $348.73	539	7	$	212.58	172	5	$	159.39

Summary of status of performance-based restricted stock unit activity


	Fiscal 2019			Fiscal 2018			Fiscal 2017
		Weighted-			Weighted-			Weighted-
	Number of	average		Number of	average		Number of	average
	units	grant date		units	grant date		units	grant date
Performance-based restricted stock units outstanding
Beginning of year	94	$	214.64	78	$	196.81	41	$	173.47
Granted	21		348.73	33		204.27	21		281.53
Change in performance award payout	(3)		281.53	22		191.76	19		151.20
Vested	(43)		191.76	(36)		151.20	—		—
Forfeited	(7)		258.80	(3)		224.49	(3)		186.90
End of year	62	$	267.60	94	$	214.64	78	$	196.81
Expected to vest	57	$	267.60	87	$	214.64	72	$	196.81

Stock options


	Fiscal 2019			Fiscal 2018			Fiscal 2017
			Weighted-			Weighted-			Weighted-
	Number of		average	Number of		average	Number of		average
	options		exercise price	options		exercise price	options		exercise price
Common stock options outstanding
Beginning of year	755	$	174.34	766	$	147.76	830	$	120.78
Granted	97		348.73	163		204.27	106		279.76
Exercised	(285)		153.64	(166)		78.81	(166)		97.44
Forfeited	(28)		263.34	(8)		260.83	(4)		120.71
End of year	539	$	212.58	755	$	174.34	766	$	147.76
Exercisable at end of year	172	$	159.39	296	$	134.27	261	$	81.72
Vested and Expected to vest	510	$	211.14	718	$	173.02	725	$	145.86

Restricted stock units


	Fiscal 2019			Fiscal 2018			Fiscal 2017
		Weighted-			Weighted-			Weighted-
	Number of	average grant		Number of	average grant		Number of	average grant
	units	date fair value		units	date fair value		units	date fair value
Restricted stock units outstanding
Beginning of year	168	$	220.68	134	$	207.70	142	$	154.71
Granted	53		335.28	97		208.82	47		278.48
Vested	(46)		207.77	(52)		164.35	(46)		117.61
Forfeited	(16)		259.65	(11)		227.44	(9)		201.51
End of year	159	$	259.21	168	$	220.68	134	$	207.70
Expected to vest	147	$	259.21	154	$	220.68	123	$	207.70