Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

Stock-Based Compensation

NOTE 11 STOCK-BASED COMPENSATION

	First quarter ended
	March 31, 2013		April 1, 2012
RSUs	$	1,102	$	2,658
Stock options and tandem SARs		5,075		3,745
DSUs(1)		1,210		778
Total stock-based compensation expense(2)	$	7,387	$	7,181

⁽¹⁾  Deferred share units (“DSUs”).

⁽²⁾  Generally included in General and administrative expenses on the Condensed Consolidated Statement of Operations.

The Company has entered into TRS as economic hedges for a portion of its outstanding stock options with tandem SARs, and substantially all of its DSUs, and recognized a gain of $6.7 million in the first quarter ended March 31, 2013 (first quarter fiscal 2012: gain of $3.2 million) in General and administrative expenses (see note 8).

Deferred share units

Approximately 4,300 DSUs were granted during the first quarter ended March 31, 2013 (first quarter fiscal 2012: 4,400), at a fair market value of $50.07 (first quarter fiscal 2012: $52.80). There were no DSU settlements during the first quarters of fiscal 2013 or fiscal 2012.

Restricted stock units

The following table is a summary of activity for RSUs granted to employees under the Company’s 2006 and 2012 Stock Incentive Plans for the periods set forth below:

	Restricted Stock Units			Weighted Average Grant Value per Unit
	(in thousands)			(in dollars)
Balance as at January 1, 2012		306		$	40.91
Granted		192			54.49
Dividend equivalent rights		6			50.30
Vested and settled		(160	)		36.72
Forfeited		(32	)		46.35
Balance as at December 30, 2012		312		$	50.91
Dividend equivalent rights		2			52.55
Vested and settled(1)		(5	)		52.85
Forfeited		(8	)		51.29
Balance as at March 31, 2013		301		$	50.80

⁽¹⁾  Settled with common shares from the TDL RSU Employee Benefit Plan Trust (“Trust”).

Stock options and tandem SARs

	Stock Options with SARs			Weighted Average Exercise Price
	(in thousands)			(in dollars)
Balance as at January 1, 2012		1,182		$	36.05
Granted		254			54.86
Exercised		(218	)		31.64
Forfeited		(46	)		41.66
Balance as at December 30, 2012		1,172		$	40.73
Exercised(1)		(77	)		32.57
Balance as at March 31, 2013		1,095		$	41.30

⁽¹⁾  Total cash settlement of $1.4 million of SARs in the first quarter of fiscal 2013 (first quarter fiscal 2012: $0.6 million). The associated options were cancelled.