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Shareholders' Equity
 9 Months Ended
Sep. 29, 2012
Stockholders' Equity Note [Abstract]  
Shareholders' Equity
SHAREHOLDERS’ EQUITY
The Company recognized approximately $2.3 million and $4.0 million in share-based compensation expense for the three month period ended September 29, 2012 and October 1, 2011, respectively. Share-based compensation expense for the nine month period ended September 29, 2012 and October 1, 2011 was $6.7 million and $10.2 million, respectively. The total excess income tax benefit recognized relating to share-based compensation for the nine months ended September 29, 2012 and October 1, 2011 was approximately $1.7 million and $1.0 million, respectively. The Company recognizes compensation expense on grants of share-based compensation awards on a straight-line basis over the vesting period of each award. As of September 29, 2012, total unrecognized compensation cost related to share-based compensation awards was approximately $24.4 million, net of estimated forfeitures, which the Company expects to recognize over a weighted average period of approximately 2.9 years.
The Company was authorized, as of September 29, 2012, to deliver up to 5.0 million shares of common stock upon exercise of non-qualified stock options or incentive stock options, or upon grant or in payment of stock appreciation rights, restricted stock and restricted stock units. Approximately 1.0 million shares were available for future grant or payment under the various plans at September 29, 2012.
Share-based Incentive Awards
The Company uses several forms of share-based incentive awards, including non-qualified stock options, incentive stock options, and stock appreciation rights (“SARs”). All grants are made at prices equal to the fair market value of the stock on the grant dates, and expire ten years from the grant date.
The majority of the Company’s annual share-based incentive awards are made in the fiscal second quarter. For the nine months ended September 29, 2012 and October 1, 2011, 255,225 and 289,612 share-based incentive awards were granted, respectively. The per share weighted average fair value of share-based incentive awards granted during those respective periods was $22.45 and $26.81.
The assumptions used in our Black-Scholes valuation related to grants were as follows:
 
September 29,
2012
 
October 1,
2011
Risk-free interest rate
1.3
%
 
2.6
%
Expected life (years)
7.0

 
7.0

Expected volatility
37.6
%
 
35.5
%
Expected dividend yield
1.2
%
 
1.0
%


A summary of share-based awards (options and SARs) as of September 29, 2012 follows below. Forfeitures of share-based awards during the nine months ended September 29, 2012 totaled 23,640.

 
Number of Shares
Shares
 
Weighted Average
Exercise Price
 
Weighted Average
Remaining
Contractual Term
(years)
 
Aggregate Intrinsic
Value (in
millions)
Outstanding
1,634,030

 
$
53.35

 
6.7

 
$
28.2

Exercisable
711,815

 
41.47

 
4.7

 
20.7



Restricted Stock and Restricted Stock Units
The Company also grants restricted stock awards and values such awards at the closing market value of its common stock on the date of grant and restrictions generally lapse three years after the date of grant.
Changes in restricted stock awards for the nine months ended September 29, 2012 were as follows:
 
 
Shares
Weighted Average Value
 
 
Unvested restricted stock awards, December 31, 2011
138,330

$
60.67

 
Granted
95,916

63.72

 
Vested
(32,640
)
43.68

 
Forfeited
(1,345
)
57.05

 
Unvested restricted stock awards, September 29, 2012
200,261

$
64.92