Stock Based Compensation (Tables)

6 Months Ended

Jul. 13, 2013

Cash Received, Windfall Tax Benefits, and Intrinsic Value from Stock Option Exercises

The cash received, the windfall tax benefit, and intrinsic value from stock option exercises for the twenty-eight weeks ended July 13, 2013 and July 14, 2012 were as follows (amounts in thousands):

	July 13, 2013		July 14, 2012
Cash received from option exercises	$	9,289	$	7,961
Cash tax windfall, net	$	3,740	$	1,465
Intrinsic value of stock options exercised	$	12,067	$	5,859

Payout Determined from Total Shareholder Return Shares

The Company TSR compared to the Peer Group TSR will determine the payout as set forth below:

Percentile	Payout as % of Target
90th		200	%
70th		150	%
50th		100	%
30th		50	%
Below 30th		0	%

Deferred and Restricted Stock Activity

The deferred and restricted stock activity for the twenty-eight weeks ended July 13, 2013 is set forth below (amounts in thousands, except price data):

	Shares			Weighted Average Fair Value		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Balance at December 29, 2012		378		$	11.49
Deferred stock issued		89		$	19.07
Restricted stock issued		59		$	22.25
Deferred stock exercised		(81	)	$	12.91
Balance at July 13, 2013		445		$	14.19		0.77	$	10,487
Outstanding vested at July 13, 2013		269		$	11.08			$	6,335
Outstanding unvested at July 13, 2013		176		$	18.92		1.94	$	4,152
Shares vesting during the twenty-eight weeks ended July 13, 2013		110		$	13.37			$	2,587

Stock Appreciation Rights Activity

The rights activity for the twenty-eight weeks ended July 13, 2013 is set forth below (amounts in thousands except price data):

	Rights			Weighted Average Fair Value		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at December 29, 2012		195		$	7.01
Rights exercised		(32	)		6.52
Outstanding at July 13, 2013		163		$	7.11		1.81	$	2,702

Summary of Company's Stock Based Compensation Expense

The following table summarizes the company’s stock based compensation expense for the twelve and twenty-eight week periods ended July 13, 2013 and July 14, 2012, respectively (amounts in thousands):

	For the Twelve Weeks Ended				For the Twenty-Eight Weeks Ended
	July 13, 2013		July 14, 2012		July 13, 2013		July 14, 2012
Stock options	$	380	$	784	$	1,017	$	1,986
Performance-contingent restricted stock awards		2,453		580		6,247		1,585
Deferred and restricted stock		422		302		876		735
Stock appreciation rights		359		164		1,550		588
Total stock based compensation	$	3,614	$	1,830	$	9,690	$	4,894

Performance-Contingent Total Shareholder Return Shares

Performance Contingent TSR Shares, ROIC Shares and Restricted Stock Awards

The following performance-contingent TSR Shares have been granted under the EPIP and have service period remaining (amounts in thousands, except price data):

Grant date	January 1, 2013		July 16, 2012
Shares granted		414		206
Vesting date		3/1/2015		2/28/2014
Fair value per share	$	17.22	$	15.45

Performance-Contingent Restricted Stock Activity

The company’s performance-contingent restricted stock activity during the twenty-eight weeks ended July 13, 2013, is presented below (amounts in thousands, except price data):

	Shares			Weighted Average Grant Date Fair Value
Nonvested at December 29, 2012		888		$	12.61
Initial grant on January 1, 2013		828		$	16.37
Grant increase for exceeding the S&P TSR		95		$	10.62
Vested		(571	)	$	10.62
Forfeited		(9	)	$	15.75
Nonvested at July 13, 2013		1,231		$	15.89

Return On Invested Capital

Performance Contingent TSR Shares, ROIC Shares and Restricted Stock Awards

The following performance-contingent ROIC Shares have been granted under the EPIP and have service period remaining (amounts in thousands, except price data):

Grant date	January 1, 2013		July 16, 2012
Shares granted		414		206
Vesting date		3/1/2015		2/28/2014
Fair value per share	$	15.51	$	14.37

Nonqualified Stock Options

Non-Qualified Stock Options, Grant Information and Valuation Assumptions

The following non-qualified stock options (“NQSOs”) have been granted under the EPIP with service period remaining. The Black-Scholes option-pricing model was used to estimate the grant date fair value (amounts in thousands, except price data and as indicated):

Grant date	February 10, 2011
Shares granted		3,213
Exercise price($)		10.87
Vesting date		2/10/2014
Fair value per share($)		2.31
Dividend yield(%)(1)		3.00
Expected volatility(%)(2)		29.20
Risk-free interest rate(%)(3)		2.44
Expected option life (years)(4)		5.00
Outstanding at July 13, 2013		3,143

(1) Dividend yield — estimated yield based on the historical dividend payment for the four most recent dividend payments prior to the grant date.

(2) Expected volatility — based on historical volatility over the expected term using daily stock prices.

(3) Risk-free interest rate — United States Treasury Constant Maturity rates as of the grant date over the expected term.

(4) Expected option life —The 2011 grant assumptions are based on the simplified formula determined in accordance with Staff Accounting Bulletin No. 110. The company does not have sufficient historical exercise behavior data to reasonably estimate the expected option life.

Stock Option

Stock Option Activity

The stock option activity for the twenty-eight weeks ended July 13, 2013 pursuant to the EPIP is set forth below (amounts in thousands, except price data):

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at December 29, 2012		9,541		$	10.71
Exercised		(943	)	$	9.85
Forfeited		(14	)	$	10.99
Outstanding at July 13, 2013		8,584		$	10.81		3.32	$	109,400
Exercisable at July 13, 2013		5,450		$	10.77		2.60	$	69,659