Stock-Based Compensation

12 Months Ended

Jan. 01, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

11. Stock-Based Compensation

Under the Equity Incentive Plan (the “Plan”), the Company may grant stock options (both incentive and nonqualified), stock appreciation rights, restricted stock awards and performance awards to key employees utilizing the Company’s Class A stock. The Plan provides that the maximum number of shares available for grants is 10 percent of the outstanding Class A stock, adjusted for Plan activity over the preceding five years. Shares available for future grants at January 1, 2012 under the Plan were 1,856,966. The Company issues shares out of treasury stock to satisfy stock-based awards. The Company has no intent to repurchase additional shares for the purpose of satisfying stock-based awards.

In 2011, 2010 and 2009, the Company recognized stock-based compensation cost of $5.7 million, $4.2 million and $6.0 million, respectively, as well as related tax benefits of $2.2 million, $1.6 million and $2.3 million, respectively.

Restricted Stock Awards

Restricted stock awards, which typically vest over a period of 3 to 5 years, are issued to certain key employees and are subject to forfeiture until the end of an established restriction period. The Company utilizes the market price on the date of grant as the fair market value of restricted stock awards and expenses the fair value on a straight-line basis over the vesting period.

A summary of the status of nonvested restricted stock awards under the Plan as of the year ended January 1, 2012 and changes during this period is presented as follows:

				Weighted
				Average
	Restricted			Grant Date
	Stock			Fair Value
Nonvested at January 2, 2011		708,405		$	18.85
Granted		464,800			16.84
Vested		(236,065	)		20.60
Forfeited		(29,150	)		17.62
Nonvested at January 1, 2012		907,990		$	17.41

As of January 1, 2012, unrecognized compensation cost related to unvested restricted shares totaled $13.0 million. The weighted average period over which this cost is expected to be recognized is approximately two years. The weighted average grant date fair value per share of restricted stock awards granted during 2011, 2010 and 2009 was $16.84, $18.08 and $12.82, respectively. The total fair market value of restricted shares vested during 2011, 2010 and 2009 was $3.7 million, $3.4 million and $2.8 million, respectively.

Stock Options

Under the terms of the Plan, stock options may not be granted at prices less than the fair market value on the date of grant, nor for a term exceeding 10 years, and typically vest over 3 years. The Company expenses the fair value of stock option grants on a straight-line basis over the vesting period. No stock options were granted in 2011, 2010 and 2009.

A summary of the status of stock option grants under the Plan as of the year ended January 1, 2012 and changes during this period is presented as follows:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Options			Price		Term (Years)		Value
Outstanding at January 2, 2011		645,036		$	25.32
Granted		—			—
Exercised		—			—
Forfeited		—			—
Expired		(129,337	)		24.96
Outstanding at January 1, 2012		515,699		$	25.41		1.64	$	—
Options exercisable at January 1, 2012		515,699		$	25.41		1.64	$	—

The table above includes 51,000 of non-employee director shares outstanding at January 1, 2012.

As of January 1, 2012, there was no unrecognized compensation cost related to unvested stock options. No stock options were exercised in 2011, 2010 and 2009.

Windfall tax benefits, which were included in the “Sale of stock and other financing activities” component of net cash from financing activities in the consolidated statement of cash flows, were insignificant for 2011, 2010 and 2009.