Share-Based Compensation

6 Months Ended

Aug. 13, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

SHARE-BASED COMPENSATION

Total share-based compensation expense and associated tax benefits recognized were as follows:

	Twelve Weeks Ended				Twenty-Eight Weeks Ended
	August 13, 2012		August 15, 2011		August 13, 2012		August 15, 2011
Share-based compensation expense related to Units that contain performance conditions	$	555	$	480	$	1,295	$	1,247
Share-based compensation expense related to all other Units	509		519		1,186		1,221
Total share-based compensation expense	$	1,064	$	999	$	2,481	$	2,468

Funds managed by Apollo Management VII, L.P., certain members of our senior management team and our board of directors formed Apollo CKE Holdings, L.P., a limited partnership (the “Partnership”) to fund the equity contribution to CKE Restaurants, Inc. The Partnership granted profit sharing interests (“Units”) in the Partnership to certain of our senior management team and directors in the form of time vesting and performance vesting Units. There are no income tax benefits associated with the Units. On August 13, 2012, the financial targets for the performance vesting Units were met causing the performance vesting Units to be converted into time vesting Units that will vest in two equal installments on August 13, 2013 and August 13, 2014. The maximum unrecognized compensation cost for unvested Units was $7,684 as of August 13, 2012.