Quarterly report pursuant to Section 13 or 15(d)

Share-based Compensation of the Company (Notes)

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Share-based Compensation of the Company (Notes) (Tanger Factory Outlet Centers, Inc)
6 Months Ended
Jun. 30, 2012
Tanger Factory Outlet Centers, Inc
 
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Share-Based Compensation of the Company
We have a shareholder approved share-based compensation plan, the Amended and Restated Incentive Award Plan of Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership (the "Plan"), which covers our independent directors, officers and our employees. During the first three months of 2012, the Company's Board of Directors approved grants of 346,000 restricted common shares to the Company's independent directors and the Company's senior executive officers. The grant date fair value of the awards was $29.50 per share. The independent directors' restricted common shares vest ratably over a three year period and the senior executive officers' restricted shares vest ratably over a five year period. Compensation expense related to the amortization of the deferred compensation is being recognized in accordance with the vesting schedule of the restricted shares.
In addition, the Board of Directors approved the grant of 225,000 restricted common shares with a grant date fair value of $25.44 to Steven B. Tanger, our President and Chief Executive Officer, under the terms of his amended and restated Employment Agreement (the "Employment Agreement") signed on February 28, 2012. Under the terms of the Employment Agreement, the Company granted Mr. Tanger the following: 45,000 fully-vested common shares; 90,000 restricted common shares that vest ratably over five years based on Mr. Tanger's continued employment with the Company and 90,000 restricted common shares that vest ratably over five years based on Mr. Tanger's continued employment with the Company and the Company achieving certain minimum total returns to shareholders.
We recorded share-based compensation expense in general and administrative expenses in our consolidated statements of operations as follows (in thousands):
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2012
 
2011
 
2012
 
2011
Restricted common shares (1)
 
$
1,864

 
$
1,266

 
$
4,714

 
$
2,533

Notional unit performance awards
 
490

 
507

 
979

 
1,013

Options
 
52

 
47

 
104

 
72

Total share-based compensation
 
$
2,406

 
$
1,820

 
$
5,797

 
$
3,618

(1) For the six months ended June 30, 2012, includes approximately $1.3 million of compensation expense related to 45,000 shares that vested immediately upon grant related to the Employment Agreement described above.

The following table summarizes information related to unvested restricted common shares outstanding as of June 30, 2012:
Unvested Restricted Common Shares
 
Number of shares
 
Weighted-average grant date fair value
Unvested at December 31, 2011
 
791,337

 
$
20.93

Granted
 
571,000

 
27.90

Vested
 
(273,800
)
 
21.44

Forfeited
 
(5,000
)
 
29.50

Unvested at June 30, 2012
 
1,083,537

 
$
24.43



The total value of restricted common shares vested during the six months ended June 30, 2012 and June 30, 2011 was $7.9 million and $5.5 million, respectively.
As of June 30, 2012, there was $29.4 million of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 3.6 years