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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK - BASED COMPENSATION
STOCK-BASED COMPENSATION:

Under the Company’s Amended and Restated Equity Incentive Plan (the “Plan”), the compensation committee of our Board of Directors may award incentive stock options (ISOs and non-ISOs), stock appreciation rights (SARs), restricted stock, unrestricted stock, stock deliverable on a deferred basis (including restricted stock units), and performance-based stock awards. The fair value of time-based or performance-based stock option grants are estimated on the date of grant using the Black-Scholes option pricing method with the following weighted-average assumptions used for grants issued during the three-month period ended March 31, 2012.

 
Assumptions
 
 
Volatility
34.82
%
Risk-free interest rate
1.38
%
Expected term (years)
5.9

Dividend yield
—

Grant-date fair value
$
15.09



The fair value of restricted stock and restricted stock units (collectively, “restricted stock awards”) is determined based on the quoted closing price of our common stock on the date of grant.

The following table summarizes our stock option and restricted stock awards activity during the three-month period ended March 31, 2012:

 
Stock
options
 
Restricted
stock awards
 
 
 
 
Outstanding, December 31, 2011
1,992,700

 
617,401

 
 
 
 
Granted
343,600

 
323,800

Exercised
(81,425
)
 
—

Vested restricted stock
—

 
(133,207
)
Forfeited
(1,800
)
 
(900
)
Expired
—

 
—

 
 
 
 
Outstanding, March 31, 2012
2,253,075

 
807,094

 
 
 
 
Exercisable, March 31, 2012
1,216,550

 
—



During the three-month period ended March 31, 2012, we granted 343,600 stock options with a weighted-average Black-Scholes fair value of $15.09 per share and a weighted-average exercise price of $42.61 per share. In connection with this grant, we recognized approximately $129,000 in stock-based compensation expense during the three-month period ended March 31, 2012.

During the three-month period ended March 31, 2012, we granted 323,800 restricted stock awards with a weighted-average exercise price of $42.61 per share. In connection with these grants, we recognized approximately $373,000 in stock-based compensation expense during the three-month period ended March 31, 2012.

During the three-month period ended March 31, 2012, the Company granted our Chief Executive Officer 100,000 performance-based restricted shares at a fair market value of $42.61 per share. In addition, the Company granted our other executive officers 52,000 performance-based restricted shares at a fair market value of $42.61 per share. Vesting of these shares is contingent upon meeting specific performance targets and would occur, if ever, in fiscal 2015. Currently, the Company believes that these targets will be achieved and, accordingly, we will continue to record compensation expense until the restricted shares vest or the Company’s assessment of achievement of the performance criteria changes.


NOTE 11 – STOCK-BASED COMPENSATION: (Continued)

Unrecognized stock-based compensation expense related to outstanding unvested stock options and unvested restricted stock awards is expected to be recorded as follows:
(dollars in thousands)
Stock
options
 
Restricted
stock awards
 
Total
 
 
 
 
 
 
2012 (period from April 1 through December 29, 2012)
$
3,184

 
$
6,241

 
$
9,425

2013
3,588

 
7,332

 
$
10,920

2014
2,612

 
6,267

 
$
8,879

2015
1,448

 
3,370

 
$
4,818

Total
$
10,832

 
$
23,210

 
$
34,042