Share-Based Compensation

3 Months Ended

Mar. 30, 2012

Share-Based Compensation

9. Share-Based Compensation

The table below summarizes activities relating to restricted stock units issued and outstanding under the 2010 Incentive Award Plan during the three months ended March 30, 2012:

	Restricted Stock Units (In  thousands)			Weighted Average Grant Date Fair Value
Unvested at December 31, 2011		741		$	10.94
Granted		301			11.50
Vested		(97	)		12.14
Forfeited		(4	)		9.34
Unvested at March 30, 2012		941		$	11.00
Expected to vest as of March 30, 2012		935		$	11.00

The total fair value of restricted stock units that vested during the three months ended March 30, 2012 and April 1, 2011 was $1.1 million and $0.1 million, respectively, based on the market price of the underlying stock on the day of vesting.

The Company recognized share-based compensation expense totaling $1.3 million and $1.0 million during the three months ended March 30, 2012 and April 1, 2011, respectively. Share-based compensation expense is primarily included in selling, general, and administrative expense in the Company’s consolidated statements of operations and as an increase to additional paid-in capital on the Company’s consolidated balance sheets. The Company recognizes share-based compensation expense on a straight-line basis over the requisite service period, typically three years, net of estimated forfeitures. The forfeiture rate is determined based on anticipated forfeitures and actual experience.

Share-based compensation expense recorded includes compensation expense of $0.5 million and $0.6 million for 43,991 and 42,536 deferred stock units granted during the three months ended March 30, 2012 and April 1, 2011, respectively, to the members of the Company’s Board of Directors pursuant to the Company’s 2010 Incentive Award Plan. The expense associated with the respective deferred stock units was recognized in full on the respective date of grant, as the deferred stock units were fully vested and nonforfeitable on the date of grant. Each deferred stock unit represents the right to receive one common share of the Company on the date of termination of the holder’s service with the Company’s Board of Directors.