2. Summary of significant accounting policies

Information regarding the Company’s significant accounting policies is contained in Note 2, “Summary of significant accounting policies,” to the financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2011. Presented below in this and the following notes is supplemental information that should be read in conjunction with “Notes to Financial Statements” in the Annual Report.

Fiscal quarter

The Company’s quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31, and January 31. The Company’s third quarters in fiscal 2011 and 2010 ended on October 29, 2011 and October 30, 2010, respectively.

Share-based compensation

The Company measures share-based compensation cost on the grant date, based on the fair value of the award, and recognizes the expense over the requisite service period for awards expected to vest. The Company estimated the grant date fair value of stock options using a Black-Scholes valuation model using the following assumptions for the periods indicated:

The Company granted 595 and 1,377 stock options during the nine months ended October 29, 2011 and October 30, 2010, respectively. The weighted-average grant date fair value of these options was $34.74 and $12.84, respectively.

The Company recorded stock compensation expense of $3,027 and $3,177 for the three months ended October 29, 2011 and October 30, 2010, respectively. The Company recorded stock compensation expense of $8,223 and $7,399 for the nine months ended October 29, 2011 and October 30, 2010, respectively. At October 29, 2011, there was approximately $35,597 of unrecognized compensation expense related to unvested options and restricted stock.