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Share-based Compensation
 3 Months Ended
Mar. 30, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-based Compensation

(9) Share-based Compensation

At its discretion, the Company grants share option awards, nonvested share awards and nonvested share unit awards to certain employees, as defined by ASC 718, Compensation—Stock Compensation, under the Company’s 2007 Equity and Performance Incentive Plan, as amended and restated on June 14, 2011 (the “Plan”), and accounts for its share-based compensation in accordance with ASC 718. The Company recognized $0.5 million and $0.4 million in share-based compensation expense for the first quarter of fiscal 2014 and 2013, respectively.

Share Option Awards

Share option awards granted by the Company generally vest and become exercisable in four equal annual installments of 25% per year with a maximum life of ten years. The exercise price of share option awards is equal to the quoted market price of the Company’s common stock on the date of grant. In the first quarter of fiscal 2013, the Company granted 2,500 share option awards. The weighted-average grant-date fair value per option for share option awards granted in the first quarter of fiscal 2013 was $7.33. No share option awards were granted in the first quarter of fiscal 2014.

As of March 30, 2014, there was $0.3 million of total unrecognized compensation expense related to nonvested share option awards granted. That expense is expected to be recognized over a weighted-average period of 2.2 years.

 

Nonvested Share Awards and Nonvested Share Unit Awards

Nonvested share awards and nonvested share unit awards granted by the Company vest from the date of grant in four equal annual installments of 25% per year. Nonvested share awards are delivered to the recipient upon their vesting. With respect to nonvested share unit awards, vested shares will be delivered to the recipient on the tenth business day of January following the year in which the recipient’s service to the Company is terminated. The total fair value of nonvested share awards which vested during the first quarter of fiscal 2014 and 2013 was $2.0 million and $1.6 million, respectively. No nonvested share unit awards vested during the first quarter of fiscal 2014 and 2013.

The Company granted 146,920 and 121,020 nonvested share awards in the first quarter of fiscal 2014 and 2013, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share awards granted in the first quarter of fiscal 2014 and 2013 was $15.27 and $15.32, respectively. In the first quarter of fiscal 2014 and 2013, the Company granted no nonvested share unit awards.

The following table details the Company’s nonvested share awards activity for the 13 weeks ended March 30, 2014:

 

     Shares     Weighted-
Average
Grant-Date
Fair Value		  

Balance as of December 29, 2013

      333,770      $ 12.38   

Granted

      146,920        15.27   

Vested

      (131,615 )      12.64   

Forfeited

      (280 )      15.32   
  

 

 

    

 

 

  

Balance as of March 30, 2014

      348,795      $ 13.50   
  

 

 

    

 

 

  

To satisfy employee minimum statutory tax withholding requirements for nonvested share awards that vest, the Company withholds and retires a portion of the vesting common shares, unless an employee elects to pay cash. In the first quarter of fiscal 2014, the Company withheld 52,927 common shares with a total value of $0.8 million. This amount is presented as a cash outflow from financing activities in the accompanying interim unaudited condensed consolidated statement of cash flows.

As of March 30, 2014, there was $4.3 million and $0.3 million of total unrecognized compensation expense related to nonvested share awards and nonvested share unit awards, respectively. That expense is expected to be recognized over a weighted-average period of 3.0 years and 2.5 years for nonvested share awards and nonvested share unit awards, respectively.

The weighted-average grant-date fair value of nonvested share awards and nonvested share unit awards is the quoted market price of the Company’s common stock on the date of grant.