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Stock-Based Compensation
6 Months Ended
Jul. 02, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation
The Stock Incentive Plan, as amended and restated in May of 2013, authorizes the grant of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and incentive bonuses to employees, officers, non-employee directors and other service providers. The number of shares of common stock available for issuance pursuant to awards granted under the Stock Incentive Plan on or after the closing of the IPO shall not exceed 3,750,500.
There were 538,273 and 168,195 stock options granted in the second quarters and first two quarters of 2013 and 2012, respectively, and no options exercised in those periods. The weighted average fair market value of stock options granted in the second quarters of 2013 and 2012 was $5.81 and $1.21, respectively. The stock options granted in the second quarter of 2013 included 403,900 awards to two executive officers of which 50% vested at IPO and the remaining vest annually over four years on the anniversary of the grant in equal installments. In the second quarter of 2013, 9,261 stock options were forfeited.
Stock-based compensation expense is included in general and administrative expense on the consolidated statements of income. During the second quarters of 2013 and 2012, the Company recorded $3.6 million and $297,000, respectively, of stock-based compensation expense. During the first two quarters of 2013 and 2012, the Company recorded $3.9 million and $0.6 million, respectively, of stock-based compensation expense. Of the total stock-based compensation recognized in the second quarter of 2013, $2.0 million related to accelerated vesting of outstanding stock options at the IPO and $1.2 million of stock-based compensation related to stock options granted at the IPO to two executive officers of which 50% were vested at the time of grant. Stock-based compensation of $41,000 and $36,000 is included in capitalized internal costs in the first two quarters of 2013 and 2012, respectively.