Stock-Based Compensation

6 Months Ended

Jul. 02, 2011

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

Stock-based Compensation

Stock-Based Compensation

Stock-based compensation expense consists of vesting grants of employee and director stock options and the employee stock purchase program ("ESPP"). The table below summarizes the stock-based compensation expense for the three and six months ended July 2, 2011 and July 3, 2010:

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Stock-based compensation expense:
Cost of goods sold	$	1,585	$	1,129	$	2,804	$	2,085
Research, development and engineering	2,275		1,722		4,062		3,122
Selling, general and administrative	3,441		1,779		5,340		3,075
Total stock-based compensation expense included in income from operations	$	7,301	$	4,630	$	12,206	$	8,282

Stock Option Plans

The following summarizes the Company’s stock option transactions for the six months ended July 2, 2011:

	Six months ended
	July 2, 2011
	Shares (in thousands)		Weighted- average exercise price per share
Outstanding at December 31, 2010	28,436		$	6.03
Granted	4,979		12.67
Exercised	(2,489	)	6.63
Forfeitures	(465	)	18.14
Outstanding at July 2, 2011	30,461		$	6.88

ESPP

Employees participating in the ESPP authorize the Company to withhold compensation and to use the withheld amounts to purchase shares of the Company's common stock at a discount.

The table below summarizes the ESPP common stock purchases for the three and six months ended July 2, 2011 and July 3, 2010.

	Three Months Ended		Six Months Ended
	July 2, 2011	July 3, 2010	July 2, 2011	July 3, 2010
Shares purchased (in thousands)	769	941	769	941