Stock-Based Compensation Arrangements

3 Months Ended

Mar. 31, 2013

Stock-Based Compensation Arrangements

6. Stock-Based Compensation Arrangements:

Our stock-based compensation plans permit us to grant awards of restricted stock to our employees and non-employee directors. Certain of these awards are subject to performance-based criteria. The fair value of all stock-based awards, less estimated forfeitures, if any, and portions capitalized as described below, is recognized as stock-based compensation expense in “General and administrative expenses” in the Consolidated Financial Statements over the period that services are required to be provided in exchange for the award.

The following table summarizes stock-based compensation expense and associated tax benefit recognized in the Consolidated Financial Statements:

	Three Months Ended
	March 31, 2013			April 1, 2012
	(in thousands)
Stock-based compensation costs	$	1,766		$	1,779
Portion capitalized as property and equipment (1)		(39	)		(30	)
Stock-based compensation expense recognized	$	1,727		$	1,749
Tax benefit recognized from stock-based compensation awards	$	29		$	619

⁽¹⁾  We capitalize the portion of stock-based compensation costs related to our design, construction, facilities and legal departments that are directly attributable to our store development projects, such as the design and construction of a new store and the remodeling and expansion of our existing stores. Capitalized stock-based compensation cost attributable to our store development projects is included in “Property and equipment, net” in the Consolidated Balance Sheets.

As of March 31, 2013, unrecognized pre-tax stock-based compensation cost of $19.5 million related to restricted stock awards granted will be recognized over a weighted average remaining vesting period of 1.6 years.

Restricted Stock

The following table summarizes restricted stock activity during the three months ended March 31, 2013:

	Restricted Shares			Weighted Average Grant  Date Fair Value
Unvested restricted stock awards, December 30, 2012		547,077		$	35.94
Granted		289,247		$	30.88
Vested		(217,737	)	$	33.69
Forfeited		(9,512	)	$	37.73
Unvested restricted stock awards, March 31, 2013		609,075		$	34.31

During the three months ended March 31, 2013, employees and non-employee directors tendered 70,117 shares of their common stock to satisfy tax withholding requirements on the vesting of their restricted stock at an average price per share of $30.47.