Stock-Based Compensation

9 Months Ended

Sep. 24, 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						Nine Months Ended
		September 24, 2011			September 25, 2010			September 24, 2011			September 25, 2010
Stock-based compensation expense in:
	Cost of sales	$	1,626		$	1,838		$	5,003		$	6,088
	Selling and administration		3,945			4,933			11,916			15,355
	Income before income taxes		5,571			6,771			16,919			21,443
	Provision for income taxes		(1,991	)		(2,441	)		(6,050	)		(7,760	)
Net income attributable to common shareowners		$	3,580		$	4,330		$	10,869		$	13,683

        We did not capitalize any stock-based compensation related costs for the quarters or the nine months ended September 24, 2011 and September 25, 2010.

        The fair value of stock-based awards granted during the first nine 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 nine months ended September 24, 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		950,190		$	37.38
Options exercised		(719,489	)	$	28.46
Options canceled		(669,454	)	$	43.77
Options outstanding as of September 24, 2011		6,155,560		$	38.25	3.96 years	$	5,769
Options exercisable as of September 24, 2011		3,610,841		$	40.58	2.94 years	$	2,424

        As of September 24, 2011, the unrecognized compensation cost related to unvested stock options expected to vest was $20,066. This unrecognized compensation will be recognized over an estimated weighted-average amortization period of 30 months.

        The total intrinsic value of options exercised during the three and nine months ended September 24, 2011 was $1,204 and $7,914, respectively. The total intrinsic value of options exercised during the three and nine months ended September 25, 2010 was $128 and $1,269, 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 nine months ended September 24, 2011 and September 25, 2010 was $20,574 and $3,118, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $2,881 and $370 for the nine months ending September 24, 2011 and September 25, 2010, respectively. In the first nine months of 2011, $1,110 was recorded in capital in excess of par value 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 September 24, 2011:

		Restricted Stock			Weighted-Average Grant Date Fair Value
Outstanding December 25, 2010			777,740		$	35.97
	Granted		284,480		$	37.30
	Vested		(295,457	)	$	37.64
	Canceled		(61,101	)	$	37.84
Outstanding September 24, 2011			705,662		$	35.64

        As of September 24, 2011, the unrecognized compensation cost related to shares of unvested restricted stock expected to vest was $18,955. This unrecognized compensation will be recognized over an estimated weighted-average amortization period of 30 months. The total fair value of restricted stock grants that vested during the three and nine months ended September 24, 2011 was $122 and $10,985, respectively. The total fair value of restricted stock grants that vested during the three and nine months ended September 25, 2010 was $2,516 and $12,510, respectively.

Performance Based Stock Award Program

        During the three months ending September 24, 2011 and September 25, 2010, compensation expense of $54 and $105, respectively, was recorded associated with performance based stock awards. During the nine months ended September 24, 2011 and September 25, 2010, compensation expense of $162 and $315, respectively, was recorded associated with these awards.