Advance Auto Parts 2008 Annual Report Download - page 90

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ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
January 3, 2009, December 29, 2007 and December 30, 2006
(in thousands, except per share data)
The accompanying notes to the consolidated financial statements
are an integral part of these statements.
F-36
Performance-Based Restricted Stock
During the fourth quarter of fiscal 2008, the Company granted 49 shares of performance-based restricted stock.
The fair value of each share was based on the market price of the Company’s common stock on the date of grant.
The fair value of performance-based restricted stock granted in fiscal 2008 was $25.81 per share. There were no
shares of performance-based restricted stock granted during fiscal 2007 or 2006. Additionally, no shares of
performance-based restricted stock vested during the year ended January 3, 2009.
There has been no expense recognized for performance-based awards since vesting was not considered probable
as of January 3, 2009.
Deferred Stock Units
The LTIP permits the granting of Deferred Stock Units, or DSUs, to members of the Company’s Board of
Directors. The Company granted 12 and eight DSUs in fiscal years 2008 and 2007, respectively, at a weighted
average fair value of $38.94 and $41.64, respectively. The DSUs are awarded at a price equal to the market price of
the Company’s underlying stock on the date of the grant. For fiscal years 2008 and 2007, respectively, the Company
recognized a total of $480 and $344, on a pre-tax basis, in compensation expense for these DSU grants.
LTIP Availability
At January 3, 2009, there are 3,998 shares of common stock currently available for future issuance under the
LTIP. This availability includes 3,000 shares of common stock the Company registered with the Securities
Exchange Commission during fiscal 2008, which had been previously approved by shareholders. The Company
issues new shares of common stock upon exercise of stock options and SARs.
Employee Stock Purchase Plan
The Company also offers an ESPP. Eligible Team Members may purchase the Company’s common stock at
95% of its fair market value on the date of purchase. There are annual limitations on Team Member elections of
either $25 per Team Member or ten percent of compensation, whichever is less. Under the plan, Team Members
acquired 80, 53 and 90 shares in fiscal years 2008, 2007 and 2006, respectively. At January 3, 2009, there were
1,328 shares available to be issued under the plan.
17. Accumulated Other Comprehensive Income (Loss):
Comprehensive income is computed as net earnings plus certain other items that are recorded directly to
shareholders’ equity during the accounting period. In addition to net earnings, comprehensive income also includes
unrealized gains or losses on interest rate swaps and postretirement plan benefits, net of tax. Accumulated other
comprehensive income (loss), net of tax, for fiscal years 2006, 2007 and 2008 consisted of the following: