Share-Based Compensation

3 Months Ended

Mar. 31, 2012

Share-Based Compensation [Abstract]

Share-Based Compensation

Note 7. Share-Based Compensation

We recognized $0.2 million and $0.3 million of share-based compensation expense in the quarters ended March 31, 2012 and March 26, 2011, respectively. 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 estimated forfeiture rates:

	Quarters Ended
	March 31, 2012	March 26, 2011
Expected dividend yield	3.9%	3.2%
Expected stock price volatility	52%	51%
Risk-free interest rate	0.8%	1.7%
Expected term of options	4.4 years	4.4 years
Estimated forfeiture rate	13%	13%
Weighted average fair value of options granted	$3.97	$5.57

The following table represents stock option activity for the quarter ended March 31, 2012:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contract Life
Outstanding options at beginning of period		887,699		$	12.80
Granted		177,300			12.79
Exercised		(4,938	)		10.13
Canceled		(28,348	)		14.17
Outstanding options at end of period		1,031,713			12.77	4.0 years
Outstanding exercisable at end of period		635,792			12.07	2.8 years

At March 31, 2012, the aggregate intrinsic value of options outstanding was $1.3 million, and the aggregate intrinsic value of exercisable options was $1.2 million. The intrinsic value of options exercised during the quarter ended March 31, 2012 was less than $0.1 million.