Stock-based Compensation

6 Months Ended

Oct. 01, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation

Stock-based Compensation

In August 2008, the Company’s stockholders approved the 2008 Long-Term Incentive Plan (the "Incentive Plan") which replaces the 1992 Stock Option Plan, as amended, and the 1992 Director Stock Option Plan, as amended. As of September 30, 2011, the Incentive Plan is authorized to issue stock options, restricted stock units and performance shares, among other types of awards, for up to 2,810,872 shares of common stock, par value $.001 per share (the "common stock").

The Company recognized stock-based compensation expense of $2,046 and $2,504 for the three (3) months ended September 30, 2011 and 2010, respectively, $5,418 and $5,506 for the six (6) months ended September 30, 2011 and 2010, respectively. The Company recognized total income tax benefit for stock-based compensation arrangements of $751 and $916 for the three (3) months ended September 30, 2011 and 2010, respectively, and $1,988 and $2,014 for the six (6) months ended September 30, 2011 and 2010, respectively. Stock-based compensation expense is recorded in Selling, general & administrative expense within the Company’s Consolidated Statements of Income.

Stock options

Stock option awards are granted with an exercise price equal to the closing market price of the common stock on the date of grant; such stock options generally become exercisable in equal amounts over a three-year period and have a contractual life of ten (10) years from the grant date. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model which includes the following weighted-average assumptions.

	Six (6) months ended
	September 30
	2011		2010
Expected life (in years)	4.8		4.9
Risk free interest rate	1.7	%	2.3	%
Annual forfeiture rate	2.1	%	2.1	%
Volatility	45.3	%	41.4	%
Dividend yield	0.7	%	0.8	%

The following table summarizes the Company’s stock option activity for the period presented and as of September 30, 2011:

	Shares (in 000’s)		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Intrinsic Value (000’s)
Outstanding at March 31, 2011	2,901		$	35.65
Granted	180		32.39
Exercised	—		—
Forfeited or expired	(224	)	41.80
Outstanding at September 30, 2011	2,857		$	34.96	5.2	$	—
Exercisable at September 30, 2011	2,463		$	35.37	4.6	$	—

The weighted-average grant-date fair value of options granted during the six (6) months ended September 30, 2011 and 2010 was $12.42 and $11.69, respectively. The total intrinsic value of options exercised during the six (6) months ended September 30, 2011 and 2010 was $0 and $32, respectively. The aggregate intrinsic value in the preceding table is based on the closing stock price of the common stock on September 30, 2011 of $21.35.

The following table summarizes certain information regarding the Company’s non-vested stock options for the period presented:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
Non-vested at March 31, 2011	690		$	10.32
Granted	180		12.42
Forfeited	—		—
Vested	(476	)	9.61
Non-vested at September 30, 2011	394		$	12.14

As of September 30, 2011, there was $3,718 of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options which is expected to be recognized over a weighted-average period of 1.9 years.

Restricted stock units

Restricted stock unit awards are subject to a service condition and generally vest in equal amounts over a three-year period from the grant date. The fair value of restricted stock units is determined based on the number of restricted stock units granted and the closing market price of the common stock on the date of grant.

The following table summarizes the Company’s restricted stock unit activity for the period presented:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
Outstanding at March 31, 2011	248		$	29.97
Granted	163		32.39
Vested	(118	)	30.19
Forfeited	(6	)	31.09
Outstanding at September 30, 2011	287		$	31.23

The total fair value of shares that vested during the six (6) months ended September 30, 2011 and 2010 was $3,553 and $1,985, respectively.

As of September 30, 2011, there was $6,953 of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock units which is expected to be recognized over a weighted-average period of 2.0 years.

Performance share awards

Performance share awards are subject to certain performance goals including the Company’s Relative Total Shareholder Return ("TSR") Ranking and cumulative Adjusted EBITDA over a three (3) year period. The Company’s Relative TSR Ranking metric is based on the three (3) year cumulative return to shareholders from the change in stock price and dividends paid between the starting and ending dates. The fair value of performance share awards (subject to cumulative Adjusted EBITDA) is determined based on the number of performance shares granted and the closing market price of the common stock on the date of grant. The fair value of performance share awards (subject to the Company’s Relative TSR Ranking) is estimated on the grant date using the Monte-Carlo simulation which includes the following weighted-average assumptions.

	Six (6) months ended
	September 30
	2011		2010
Expected Volatility	50.8	%	52.3	%
Risk free interest rate	0.9	%	1.4	%
Dividend yield	0.7	%	0.8	%

The following table summarizes the Company’s performance share award activity for the period presented:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
Outstanding at March 31, 2011	179		$	33.13
Granted	110		34.15
Vested	(52	)	30.87
Forfeited	(50	)	35.23
Outstanding at September 30, 2011	187		$	33.77

The total fair value of shares that vested during the six (6) months ended September 30, 2011 and 2010 was $1,679 and $0, respectively.

As of September 30, 2011, there was $4,284 of total unrecognized pre-tax stock-based compensation expense related to non-vested performance share awards which is expected to be recognized over a weighted-average period of 2.3 years.