The restricted stock awards generally vest five years from the grant date, and expire ten years from the grant date. At December 31, 2006, the unamortized compensation expense related to the restricted stock awards totaled $0.4 million, which will be recognized over a weighted average period of 2.1 years. The total fair value of restricted stock awards vested during the years ended December 31, 2006 and 2005 was $0.1 million for each year. No restricted stock awards vested during 2004. Total share-based compensation expense recognized related to these restricted stock awards was $0.2 million, $0.3 million and $0.2 million for the years ended December 31, 2006, 2005 and 2004, respectively.

Prior to the adoption of SFAS 123(R), we recorded restricted stock awards as unearned compensation, a reduction of stockholders’ equity, based on the quoted fair market value of our common stock on the date of grant. We adjusted the common stock balances on the date of grant to reflect the issuance of the restricted stock awards. We recorded compensation expense ratably over the vesting period with an offsetting credit to the unearned compensation balance. Under the provisions of SFAS 123(R), restricted stock awards are not deemed to be issued until the end of the vesting period. As such, we reclassified the unearned compensation balance to additional paid-in capital upon adoption and we recognize compensation cost over the requisite service period with an offsetting credit to additional paid-in capital.

Employee Stock Purchase Plan

In March 1998, the Board adopted the SCP Pool Corporation Employee Stock Purchase Plan (the ESPP). Under our ESPP, employees who meet minimum age and length of service requirements may purchase stock at 85% of the lower of:

a.	the closing price of our common stock at the end of a six month plan period ending either June 30 or December 31; or
b.	the average of the beginning and ending closing prices of our common stock for such six month period.

No more than 956,250 shares of our common stock may be issued under our ESPP. For the two plan periods in each year presented below, we awarded the following aggregate share amounts:

Share-based compensation expense related to our ESPP was $0.4 million in 2006, $0.3 million in 2005 and $0.4 million in 2004. The grant date fair value for the most recent purchase period ended December 31, 2006 was $5.88 per share.

Impact of Adoption of SFAS 123(R)

The impact of the adoption of SFAS 123(R) on our Consolidated Statements of Income and Consolidated Statements of Cash Flows is as follows (in thousands, except per share data):