Stock-Based Compensation

6 Months Ended

Jun. 25, 2011

Stock-Based Compensation

Stock-Based Compensation

11. Stock-Based Compensation

        The estimated fair value of our stock-based awards, less expected forfeitures, is amortized over the awards' vesting period on a straight-line basis. The following table presents stock-based compensation included in our consolidated statements of operations:

		Three Months Ended						Six Months Ended
		June 25, 2011			June 26, 2010			June 25, 2011			June 26, 2010
Stock-based compensation expense in:
	Cost of sales	$	1,700		$	2,227		$	3,378		$	4,222
	Selling and administration		3,730			5,485			7,970			10,346
	Income before income taxes		5,430			7,712			11,348			14,568
	Provision for income taxes		(1,940	)		(2,804	)		(4,058	)		(5,281	)
Net income attributable to common shareowners		$	3,490		$	4,908		$	7,290		$	9,287

        We did not capitalize any stock-based compensation related costs for the quarters or the six months ended June 25, 2011 and June 26, 2010.

        The fair value of stock-based awards granted during the first six months of 2011 and 2010 was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	Options Granted In:
	2011			2010
Expected life (in years)		4.2			4.5
Expected volatility		33.4	%		34.0	%
Risk-free interest rate		2.22	%		2.35	%
Expected dividend yield		0.0	%		0.0	%
Weighted-average grant date fair value	$	11.35		$	11.96

Stock Options

        The following table summarizes the stock option activity in the equity incentive plans for the six months ended June 25, 2011:

	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Options outstanding as of December 25, 2010		6,594,313		$	37.87
Options granted		947,910		$	37.37
Options exercised		(591,777	)	$	27.93
Options canceled		(472,605	)	$	42.75
Options outstanding as of June 25, 2011		6,477,841		$	38.34	4.09 years	$	27,431
Options exercisable as of June 25, 2011		3,895,599		$	40.60	3.04 years	$	13,777

        As of June 25, 2011, the unrecognized compensation cost related to 2,407,941 unvested stock options expected to vest was $22,830. This unrecognized compensation will be recognized over an estimated weighted-average amortization period of 32 months.

        The total intrinsic value of options exercised during the three and six months ended June 25, 2011 was $4,583 and $6,711, respectively. The total intrinsic value of options exercised during the three and six months ended June 26, 2010 was $653 and $1,141, respectively. Intrinsic value is defined as the difference between the market price on the date of exercise and the grant date price. The total amount of cash received from the exercise of options during the six months ended June 25, 2011 and June 26, 2010 was $12,713 and $2,659, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $2,465 and $342 for the six months ending June 25, 2011 and June 26, 2010, respectively. A charge of $362 was recorded in capital in excess of par value in the first six months of 2011 for the excess of deferred tax assets over the actual tax benefits at option exercise. We settle employee stock option exercises with newly issued common shares.

Restricted Stock

        Stock compensation expense associated with restricted common stock is charged for the market value on the date of grant, less estimated forfeitures, and is amortized over the awards' vesting period on a straight-line basis.

        The following table summarizes the restricted stock activity from December 25, 2010 through June 25, 2011:

		Restricted Stock			Weighted Average Grant Date Fair Value
Outstanding December 25, 2010			777,740		$	35.97
	Granted		283,450		$	37.29
	Vested		(291,942	)	$	37.67
	Canceled		(51,159	)	$	38.29
Outstanding June 25, 2011			718,089		$	35.63

        As of June 25, 2011, the unrecognized compensation cost related to 672,490 shares of unvested restricted stock expected to vest was $21,783. This unrecognized compensation will be recognized over an estimated weighted-average amortization period of 31 months. The total fair value of restricted stock grants that vested during the three and six months ended June 25, 2011 was $861 and $10,997, respectively. The total fair value of restricted stock grants that vested during the three and six months ended June 26, 2010 was $890 and $9,994, respectively.

Performance Based Stock Award Program

        During the three months ending June 25, 2011 and June 26, 2010, compensation expense of $54 and $105, respectively, was recorded associated with performance based stock awards. During the six months ended June 25, 2011 and June 26, 2010, compensation expense of $108 and $286, respectively, was recorded associated with these awards.