Share-Based Compensation

9 Months Ended

Sep. 24, 2011

Share-Based Compensation [Abstract]

SHARE-BASED COMPENSATION

NOTE 7. SHARE-BASED COMPENSATION

We recognized $0.1 million of share-based compensation expense for the quarters ended September 24, 2011 and September 25, 2010. We recognized $0.5 million of share-based compensation expense in the three quarters ended September 24, 2011 and September 25, 2010. We use the Black-Scholes option-pricing model to calculate the fair value of share-based awards. Our determination of fair value of share-based awards on the date of grant is affected by assumptions regarding certain variables. These variables include, but are not limited to, our expected dividend yield, our expected stock price volatility over the expected term of the awards, the risk-free interest rate, and the expected term of the options. The anticipated risk-free interest rate is based on treasury instruments whose terms are consistent with the expected term of the stock options granted. The expected volatility, term of options and dividend yield are based on historical experience.

The following table includes the assumptions we used in determining the fair value of stock options, the resulting weighted average fair value of options granted, and the applicable estimated forfeiture rates:

	Three Quarters Ended
	September 24, 2011	September 25, 2010
Expected dividend yield	3.2%	4.1%
Expected stock price volatility	51%	50%
Risk-free interest rate	1.7%	2.4%
Expected term of options	4.4 years	4.7 years
Estimated forfeiture rate	13%	15%
Weighted average fair value of options granted	$5.54	$4.19

The following table represents stock option activity for the quarter ended September 24, 2011:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contract Life
Outstanding options at beginning of period		903,254		$	12.84
Granted		5,250			14.09
Exercised		(1,606	)		10.84
Canceled		(14,936	)		14.90
Outstanding options at end of period		891,962			12.82		4.0 years
Outstanding exercisable at end of period		523,002			11.42		3.0 years

At September 24, 2011, the aggregate intrinsic value of options outstanding was $1.1 million, and the aggregate intrinsic value of exercisable options was $1.1 million.