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Stock Plans and Stock Based Compensation
 3 Months Ended
Mar. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Plans and Stock Based Compensation
Stock Plans and 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 statement of income:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2012
 
June 25, 2011
 
June 30, 2012
 
June 25, 2011
Stock-based compensation expense included in:
 
 
 
 
 
 
 
Cost of sales
$
2,345

 
$
1,700

 
$
3,792

 
$
3,378

Selling and administration
2,976

 
3,730

 
6,794

 
7,970

Stock-based compensation, before income taxes
5,321

 
5,430

 
10,586

 
11,348

Provision for income taxes
(1,884
)
 
(1,940
)
 
(3,768
)
 
(4,058
)
Stock-based compensation, net of tax
$
3,437

 
$
3,490

 
$
6,818

 
$
7,290


The fair value of stock-based awards granted during the first six months of 2012 and 2011 was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions:
 
June 30, 2012
 
June 25, 2011
Expected life (in years)
4.5

 
4.2

Expected volatility
34.9
%
 
33.4
%
Risk-free interest rate
0.84
%
 
2.22
%
Expected dividend yield
0
%
 
0
%
Weighted-average grant date fair value
$
10.94

 
$
11.35









Stock Options
The following table summarizes stock option activities under our plans:
 
Shares
 
Weighted Average
Exercise Price
 
Weighted Average
Remaining
Contractual Life
(in years)
 
Aggregate
Intrinsic
Value
Options outstanding as of December 31, 2011
6,081,263

 
$
38.25

 
 
 
 

Options granted
588,125

 
$
36.08

 
 
 
 

Options exercised
(125,104
)
 
$
24.96

 
 
 
 

Options canceled
(119,712
)
 
$
40.26

 
 
 
 

Options outstanding as of June 30, 2012
6,424,572

 
$
38.27

 
3.50 years
 
$
8,671

Options exercisable as of June 30, 2012
4,421,703

 
$
39.80

 
2.65 years
 
$
6,049


As of June 30, 2012, the unrecognized compensation cost related to 2,002,869 unvested stock options expected to vest was $16,906. 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 months ended June 30, 2012 and June 25, 2011 was $177 and $4,583, respectively, with intrinsic value defined as the difference between the market price on the date of exercise and the grant date price. The total intrinsic value of options exercised during the six month ended June 30, 2012 and June 25, 2011 was $1,308 and $6,711, respectively. The total amount of cash received from the exercise of options during the six month ended June 30, 2012 and June 25, 2011 was $3,107 and $12,713, respectively. The actual tax benefit realized for the tax deductions from option exercises during the six month ended June 30, 2012 was $420. A charge of $148 was recorded in capital in excess of par value in the first six months of 2012 for the excess of deferred tax assets over the actual tax benefits at option exercise. We settle 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 for the six months ended June 30, 2012 :
 
Restricted Stock
 
Weighted
Average
Grant Date
Fair Value
Outstanding as of December 31, 2011
703,011

 
$
35.70

Granted
539,470

 
36.09

Vested
(283,812
)
 
35.96

Canceled
(15,946
)
 
35.45

Outstanding as of June 30, 2012
942,723

 
$
35.85


As of June 30, 2012, the unrecognized compensation cost related to shares of unvested restricted stock expected to vest was $27,101. This unrecognized compensation will be recognized over an estimated weighted-average amortization period of 35 months. The total fair value of restricted stock grants that vested during the three and six month ended June 30, 2012 was $813 and $10,206, respectively. The total fair value of restricted stock grants that vested during the three and six month ended June 25, 2011 was $861 and $10,997, respectively. The actual tax benefit realized for the tax deductions from restricted stock grants that vested during the six months ending June 30, 2012 was $3,662.
Performance Based Stock Award Program
Compensation expense associated with performance-based stock awards of $0 and $54 has been recorded during the three months ended June 30, 2012 and June 25, 2011, respectively.