Buffalo Wild Wings 2011 Annual Report Download - page 54

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54
BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 25, 2011 and December 26, 2010
(Dollar amounts in thousands, except per-share amounts)
(b) Restricted Stock Units
We have a stock performance plan, under which restricted stock units are granted annually at the discretion of the
Board of Directors.
In 2011, 2010 and 2009, we granted restricted stock units subject to three-year cliff vesting and a cumulative three-year
earnings target. The number of units which vest at the end of the three-year period is based on performance against the target.
These restricted stock units are subject to forfeiture if they have not vested at the end of the three-year period. Stock-based
compensation is recognized for the expected number of units vesting at the end of the period and is expensed over the three-
year period.
For each grant, restricted stock units meeting the performance criteria will vest as of the end of our fiscal year. The
distribution of vested restricted stock units as common stock typically occurs in March of the following year. The common
stock is issued to participants net of the number of shares needed for the required minimum employee withholding taxes. We
issue new shares of common stock upon the disbursement of restricted stock units. Restricted stock units are contingently
issuable shares, and the activity for fiscal 2011 is as follows:
Number
of shares
Weighted
average
grant date
fair value
Outstanding, December 26, 2010
493,653
$ 35.66
Granted
178,800
53.94
Vested
(289,812)
33.97
Cancelled
(22,361) 37.95
Outstanding, December 25, 2011
360,280
$ 45.95
As of December 25, 2011, the stock-based compensation expense related to nonvested awards not yet recognized was
$9,353, which is expected to be recognized over a weighted average period of 1.7 years. During fiscal years 2011 and 2010
the total grant date fair value of shares vested was $9,845 and $3,101, respectively. The weighted average grant date fair
value of restricted stock units granted during 2010 was $40.82. During 2011, we recognized $9,985 of stock-based expense
related to restricted stock units.
(c) Employee Stock Purchase Plan
We have reserved 600,000 shares of common stock for issuance under the Employee Stock Purchase Plan (“ESPP”).
The ESPP is available to substantially all employees subject to employment eligibility requirements. Participants may
purchase our common stock at 85% of the beginning or ending closing price, whichever is lower, for each six-month period
ending in May and November. During 2011, 2010, and 2009, we issued 30,127, 36,049, and 48,237 shares, respectively, of
common stock. As of December 25, 2011, we had 274,662 shares available for future issuance under the ESPP.