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Stock Incentive Plans
 3 Months Ended
Mar. 23, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Incentive Plans
Stock Incentive Plans

We are authorized to issue up to 8,000,000 shares of our common stock under our 2004 Stock Option and Incentive Plan, as amended (the “Incentive Plan”), of which we have issued or committed to issue 3,207,754 shares as of March 23, 2012. In addition to these shares, additional shares of common stock could be issued in connection with the market stock unit awards as further described below and the stock appreciation rights issued in 2008.

Restricted Stock Awards

Restricted stock awards issued to our officers and employees generally vest over a 3-year period from the date of the grant based on continued employment. We measure compensation expense for the restricted stock awards based upon the fair market value of our common stock at the date of grant. Compensation expense is recognized on a straight-line basis over the vesting period and is included in corporate expenses in the accompanying condensed consolidated statements of operations. A summary of our restricted stock awards from January 1, 2012 to March 23, 2012 is as follows:
 
Number of
Shares
 
Weighted-
Average Grant
Date Fair
Value
Unvested balance at January 1, 2012
1,010,127

 
$
6.97

Granted
365,599

 
9.84

Additional shares from dividends
5,649

 
10.00

Vested
(690,718
)
 
5.36

Unvested balance at March 23, 2012
690,657

 
$
10.09



The remaining share awards are expected to vest as follows: 5,841 shares during 2012, 341,784 during 2013, 221,163 during 2014, and 121,869 during 2015. As of March 23, 2012, the unrecognized compensation cost related to restricted stock awards was $6.7 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 28 months. We recorded $0.8 million of compensation expense related to restricted stock awards for each of the fiscal quarters ended March 23, 2012 and March 25, 2011.

Market Stock Units

We have awarded market stock units (“MSUs”) to our executive officers. MSUs are restricted stock units that are earned three years from the date of grant, subject to achievement of certain levels of total stockholder return over the performance period (the "Performance Period"). Each executive officer is granted a target number of MSUs (the “Target Award”). The actual number of MSUs that will be earned, if any, and converted to shares of common stock at the end of the Performance Period is equal to the Target Award multiplied by a conversion ratio. The conversion ratio is calculated by dividing the 30-trading day average closing price of our common stock on the last day of the Performance Period plus dividends paid by the 30-trading day average closing price of our common stock on the date of grant. The maximum payout to an executive officer under an MSU award is equal to 150% of the Target Award and no shares of common stock are earned if the conversion ratio is less than 50%. The number of shares that are earned at the end of the Performance Period also includes an additional number of shares of common stock to reflect dividends that would have been paid during the Performance Period on the number of MSUs actually earned. The fair values of the MSU awards are determined using a Monte Carlo simulation. A summary of our MSUs from January 1, 2012 to March 23, 2012 is as follows:
 
Number of
Units
 
Weighted-
Average Grant
Date Fair
Value
Unvested balance at January 1, 2012
161,575

 
$
11.45

Granted
89,990

 
11.14

Additional units from dividends
1,293

 
10.00

Unvested balance at March 23, 2012
252,858

 
$
11.33



As of March 23, 2012, the unrecognized compensation cost related to the MSUs was $1.9 million and is expected to be recognized on a straight-line basis over a weighted average period of 28 months. For the fiscal quarters ended March 23, 2012 and March 25, 2011, we recorded approximately $0.2 million and $0.1 million, respectively, of compensation expense related to the MSUs.