3-61. Interpreting Disclosure on Share-Based Compensation lululemon athletica reported the following information for the fiscal year ended February 3, 2019. A summary of the balances of the Company's stock-based compensation plans as of February 3, 2019, January 28,2018 , and January during the fiscal years then ended is presented below: Stock-based compensation expense charged to income for the plans was $29.6 million, $17.6 million, and $16.8 million for the years ended February 3,2019 , January 28,2018 , and January 29,2017 , respectively. Required a. How do stock options and restricted shares differ? In what respects are they the same? b. Why do companies impose vesting periods on restricted stock grants? c. Consider the stock option activity. Compare the weighted average exercise price of the granted stock options and exercised options each year. What explains the difference in the two amounts each year? d. Use the financial statement effects template to record the restricted shares granted during 2018. The common stock has a $0.005 par value per share. e. Use the financial statement effects template to record the total 2018 compensation expense related to Lululemon's share-based compensation activity. Include the tax effects of the compensation expense. Assume a tax rate of 21%