Quarterly report pursuant to Section 13 or 15(d)

Equity-Based Compensation of the Operating Partnership (Notes)

v2.4.0.6
Equity-Based Compensation of the Operating Partnership (Notes) (Tanger Properties Limited Partnership)
 6 Months Ended
Jun. 30, 2012
Tanger Properties Limited Partnership
  
Disclosure of Compensation Related Costs Equity Based Payments [Text Block]
Equity-Based Compensation of the Operating Partnership
As discussed in Note 9, the Operating Partnership and the Company have a joint plan whereby equity based and performance based awards may be granted to directors, officers and employees. When shares are issued by the Company, the Operating Partnership issues corresponding units to the Company based on the current exchange ratio as provided by the Operating Partnership agreement. Based on the current exchange ratio, each unit in the Operating Partnership is equivalent to four common shares of the Company. Therefore, when the Company grants an equity based award, the Operating Partnership treats each award as having been granted by the Operating Partnership.

The tables below set forth the equity based compensation expense and other related information as recognized in the Operating Partnership's consolidated financial statements.
We recorded equity-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,
Restricted units (1)
 
2012
 
2011
 
2012
 
2011
Restricted units (1)
 
$
1,864

 
$
1,266

 
$
4,714

 
$
2,533

Notional unit performance awards
 
490

 
507

 
979

 
1,013

Options
 
52

 
47

 
104

 
72

Total equity-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 11,250 units issued related to a restricted share grant that vested immediately pursuant to the Employment Agreement as described in footnote 9.

The following table summarizes information related to unvested restricted units outstanding as of June 30, 2012:
Unvested Restricted Units
 
Number of units
 
Weighted-average grant date fair value
Unvested at December 31, 2011
 
197,834

 
$
83.70

Granted
 
142,750

 
111.60

Vested
 
(68,450
)
 
85.75

Forfeited
 
(1,250
)
 
118.00

Unvested at June 30, 2012
 
270,884

 
$
93.73



The total value of restricted units 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 equity-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 3.6 years