Share-Based Compensation

9 Months Ended

Nov. 07, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

NOTE 11 — SHARE-BASED COMPENSATION

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

	Successor								Predecessor
	Twelve Weeks Ended November 7, 2011		Forty Weeks Ended November 7, 2011		Twelve Weeks Ended November 1, 2010		Sixteen Weeks Ended November 1, 2010		Twenty-Four Weeks Ended July 12, 2010
Share-based compensation expense related to restricted stock awards that contain market or performance conditions	$	—	$	—	$	—	$	—	$	717
Share-based compensation expense related to the acceleration of vesting of stock options and awards in connection with the Merger		—		—		—		10,587		1,521
Share-based compensation expense related to Units that contain performance conditions		555		1,802		767		767		—
All other share-based compensation expense		508		1,729		524		698		2,472
Total share-based compensation expense	$	1,063	$	3,531	$	1,291	$	12,052	$	4,710
Associated tax benefits	$	—	$	—	$	—	$	—	$	1,804

Successor

In connection with the Merger, certain affiliates of Apollo Management, 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 also granted 5,108,333 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. Under certain circumstances, a portion of the Units may become subject to both performance and market conditions. We recorded $1,063, $3,531, $1,291 and $1,465 of share-based compensation expense related to the Units for the twelve and forty weeks ended November 7, 2011 and the twelve and sixteen weeks ended November 1, 2010, respectively. The maximum unrecognized compensation cost for the time and performance vesting Units was $11,227 as of November 7, 2011.

In connection with the Merger, the vesting of all outstanding unvested options and restricted stock awards was accelerated immediately prior to closing. As a result of the acceleration, we recorded $10,587 in share-based compensation expense during the sixteen weeks ended November 1, 2010 within general and administrative expense in our accompanying unaudited Condensed Consolidated Statement of Operations related to the post-Merger service period for certain stock options and awards (see also Predecessor below).

Predecessor

We had various share-based compensation plans ("Predecessor Plans") that provided restricted stock awards and stock options for certain employees, non-employee directors and external service providers to acquire shares of our common stock. In connection with the Merger, we recorded $1,521 in stock compensation expense related to the acceleration of options and restricted stock awards from the Predecessor Plans during the twenty-four weeks ended July 12, 2010.