Stock-based Compensation

6 Months Ended

Sep. 29, 2012

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, 2012, the Incentive Plan is authorized to issue stock options, restricted stock units and performance shares, among other types of awards, for up to 2,926,408 shares of common stock, par value $0.001 per share (the "common stock").

The Company recognized stock-based compensation expense of $1,735 and $2,046 for the three (3) months ended September 30, 2012 and 2011, respectively, and $4,606 and $5,418 for the six (6) months ended September 30, 2012 and 2011, respectively. The Company recognized total income tax benefit for stock-based compensation arrangements of $638 and $751 for the three (3) months ended September 30, 2012 and 2011, respectively, and $1,693 and $1,988 for the six (6) months ended September 30, 2012 and 2011, respectively. Stock-based compensation expense is recorded in Selling, general & administrative expense within the Company’s Consolidated Statements of Operations.

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 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
	2012		2011
Expected life (in years)	7.0		4.8
Risk free interest rate	0.8	%	1.7	%
Annual forfeiture rate	2.0	%	2.1	%
Volatility	44.6	%	45.3	%
Dividend yield	1.0	%	0.7	%

The following table summarizes the Company’s stock option activity:

	Shares (in 000’s)		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Intrinsic Value (000’s)
Outstanding at March 31, 2012	2,827		$	34.95
Granted	184		22.07
Exercised	—		—
Forfeited or expired	(131	)	33.14
Outstanding at September 30, 2012	2,880		$	34.21	4.3	$	618
Exercisable at September 30, 2012	2,521		$	35.20	3.6	$	—

The weighted-average grant-date fair value of options granted during the six (6) months ended September 30, 2012 and 2011 was $9.02 and $12.42, respectively. The intrinsic value of options exercised during the six (6) months ended September 30, 2012 and 2011 was $0 and $0, respectively. The aggregate intrinsic value in the preceding table is based on the closing stock price of the common stock on September 28, 2012 of $25.52.

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

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
Non-vested at March 31, 2012	382		$	12.15
Granted	184		9.02
Forfeited	(19	)	11.36
Vested	(188	)	12.16
Non-vested at September 30, 2012	359		$	10.57

As of September 30, 2012, there was $2,878 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 typically 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:

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
Outstanding at March 31, 2012	280		$	31.23
Granted	175		22.07
Vested	(167	)	29.25
Forfeited	(10	)	29.75
Outstanding at September 30, 2012	278		$	26.71

The total fair value of shares that vested during the six (6) months ended September 30, 2012 and 2011 was $3,674 and $3,921, respectively.

As of September 30, 2012, there was $5,476 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 1.9 years.

Performance share awards

Performance share awards are subject to one of the performance goals - the Company's Relative Total Shareholder Return ("TSR") Ranking or cumulative Adjusted EBITDA - over a three 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 valuation method which includes the following weighted-average assumptions.

	Six (6) months ended
	September 30
	2012		2011
Expected volatility	41.3	%	50.8	%
Risk free interest rate	0.4	%	0.9	%
Dividend yield	1.0	%	0.7	%

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

	Shares (in 000’s)		Weighted-Average Grant-Date Fair Value
Outstanding at March 31, 2012	183		$	33.77
Granted	111		22.35
Vested	—		—
Forfeited	(11	)	30.98
Outstanding at September 30, 2012	283		$	29.39

The total fair value of shares that vested during the six (6) months ended September 30, 2012 and 2011 was $0 and $1,679, respectively.

As of September 30, 2012, there was $3,209 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 1.9 years.