STOCK-BASED COMPENSATION

We record stock-based compensation expense for restricted and unrestricted stock awards, performance share units, stock options, and shares purchased under an employee stock purchase plan.

Stock-based compensation expense was as follows (in millions):



	2013		2012		2011
Restricted and unrestricted stock and performance share units	$	8.1	$	7.5	$	6.7
Stock options	—		0.1		0.4
Employee stock purchase plan	0.3		0.3		0.3
Total stock-based compensation	$	8.4	$	7.9	$	7.4

Total related tax benefit recognized	$	2.9	$	2.9	$	2.8

Our 2005 Long-Term Equity Incentive Plan, as amended and restated effective May 2013 ("Incentive Plan"), provides for the issuance or delivery of up to 7.95 million shares of our common stock over the full term of the Incentive Plan.

No capitalized stock-based compensation was included in Property and equipment, net on the Consolidated Balance Sheets for 2013, 2012 or 2011.

Restricted and unrestricted stock and performance share units

Under the Incentive Plan, restricted stock is granted to executive officers and key employees and vests annually over three or four years. Unrestricted stock granted to our directors vests immediately. Restricted and unrestricted stock-based compensation expense is calculated based on the grant-date market value. We recognize compensation expense on a straight-line basis over the vesting period, net of estimated forfeitures.

Performance share units have been granted to executive officers and certain key employees since 2010. Vesting of the performance share units is contingent upon the achievement of revenue and/or profitability growth goals at the end of each three year performance period. Each performance share unit is equivalent to one share of common stock. Compensation expense is calculated based on the grant-date market value of our stock and is recognized ratably over the performance period for the performance share units which are expected to vest. Our estimate of the performance units expected to vest is reviewed and adjusted as appropriate each quarter.

Restricted and unrestricted stock and performance share units activity for the year ended December 27, 2013 was as follows (shares in thousands):



	Shares		Weighted- average grant-date price
Non-vested at beginning of period	1,435		$	15.23
Granted	643		$	19.00
Vested	(437	)	$	15.25
Forfeited	(97	)	$	17.45
Non-vested at the end of the period	1,544		$	16.66

The weighted average grant-date price of restricted and unrestricted stock and performance share units granted during the years 2013, 2012 and 2011 was $19.00, $16.72, and $14.72, respectively. As of December 27, 2013, total unrecognized stock-based compensation expense related to non-vested restricted stock was approximately $8.3 million, of which $7.4 million is estimated to be recognized over a weighted average period of 1.7 years through 2017. As of December 27, 2013, total unrecognized stock-based compensation expense related to performance share units, assuming achievement of maximum financial goals, was approximately $8.1 million, of which $2.8 million is currently estimated to be recognized over a weighted average period of 1.6 years through 2015. The total fair value of restricted shares vesting during 2013, 2012 and 2011 was $4.8 million, $5.3 million and $5.2 million, respectively.

Stock options

Our Incentive Plan provides for both nonqualified stock options and incentive stock options (collectively, “stock options”) for directors, officers, and certain employees. We issue new shares of common stock upon exercise of stock options. All of our stock options are vested and expire if not exercised within seven years from the date of grant. The maximum contractual term for our outstanding option awards is ten years.

There were no stock options granted during fiscal 2013, 2012 or 2011.

Stock option activity was as follows (shares in thousands):



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (in millions)
Outstanding, December 28, 2012	639		$	16.91
Exercised	(454	)	$	16.12
Expired/Forfeited	(111	)	$	21.24
Outstanding, December 27, 2013	74		$	14.99	1.65	$	0.8
Exercisable, December 27, 2013	74		$	14.99	1.65	$	0.8

The aggregate intrinsic value in the table above is the amount by which the market value of the underlying stock exceeded the exercise price of outstanding options, before applicable income taxes and represents the amount optionees would have realized if all in-the-money options had been exercised on the last business day of the period indicated. The closing per share market value of the Company’s stock on December 27, 2013 was $25.92.

Total unrecognized stock-based compensation expense related to non-vested stock options was de minimis as of December 27, 2013. The total intrinsic value of options exercised was $3.0 million and $1.9 million, in 2013 and 2012, respectively, and was de minimis in 2011, determined as of the date of exercise.

Cash received from option exercises, net of tax withholdings, during 2013, 2012 and 2011 was $7.3 million, $2.5 million and $0.1 million, respectively. The actual tax benefit realized for the deduction from option exercises was $1.0 million and $0.6 million in 2013 and 2012, respectively, and was de minimis for 2011.

Employee stock purchase plan

Our Employee Stock Purchase Plan (“ESPP”) reserves for purchase 1.0 million shares of common stock. The plan allows eligible employees to contribute up to 10% of their earnings toward the monthly purchase of the Company's common stock. The employee's purchase price is the lesser of 85% of the fair market value of shares on either the first day or the last day of each month. We consider our ESPP to be a component of our stock-based compensation and accordingly we recognize compensation expense over the requisite service period for stock purchases made under the plan. The requisite service period begins on the enrollment date and ends on the purchase date, the duration of which is one month.

The following table summarizes transactions under our ESPP from fiscal year 2011 through 2013 (shares in thousands):

Average Price Per
Share

Issued during fiscal year 2013

Issued during fiscal year 2012

Issued during fiscal year 2011